After the non-bank financial market came under the regulation of the National Bank, this segment underwent a major “reset”: some players left the market, others were removed from the registries, and the remaining companies were forced to adapt to stricter rules regarding transparency, liquidity, and risk management.
This is discussed in an article by the Center for Economic Research and Forecasting, “Financial Pulse.”
According to analysts, by early 2026, the number of participants in Ukraine’s financial market, excluding banks, had shrunk to 655 institutions, whereas at the start of 2022 there were 1,824. Thus, over the years of the war, the market lost 61% of its players.
The sharpest decline affected financial companies, credit unions, pawnshops, and insurers. At the same time, despite this significant “downsizing,” the market itself has become more structured and controlled, and its key segments have become more transparent to both regulators and consumers.
As noted by Dilyara Mustafayeva, head of the analytical department at “Financial Pulse,” the transfer of the non-banking market under the supervision of the NBU has become one of the most important stages in its transformation.
“After the National Bank was granted authority to regulate non-bank financial services, the market began to change not only formally but also in substance. Requirements for transparency in ownership structure, asset quality, liquidity, and the business reputation of executives, as well as increased oversight, have significantly altered the very business model of many companies. In fact, the market underwent a cleansing: weak, inactive, or non-transparent institutions disappeared, and those that remained were forced to operate under clearer and stricter rules,” she emphasized.
As of early 2026, in addition to 61 banks, the Ukrainian financial market included 411 financial companies, 101 pawnshops, 85 credit unions, 57 insurance companies, and one leasing company. Financial companies continue to account for the largest share in terms of the number of participants—57% of the total number of players. Pawnshops account for 14%, credit unions—11.9%, banks—8.5%, and insurance companies—7.96%.
However, if we look not at the number of participants but at their share of the market, the picture is quite different: banks account for 91% of all financial market assets. Financial companies account for 6.6%, insurers for 2%, and the share of all other players does not exceed 1%. As noted in “Financial Pulse,” this once again demonstrates that the non-banking segment, despite its size, still lags significantly behind the banking sector in terms of the scale of its resources.
At the same time, 2025 proved to be a financially successful year for non-bank institutions. Their total profit reached UAH 20.1 billion, which is 21% more than the previous year. Financial companies posted the highest financial results—UAH 13 billion, or 65% of the market’s total profit. Insurance companies earned UAH 6.85 billion, accounting for 34% of the total result. The share of credit unions and pawnshops in the overall financial result remained minimal—less than 1%.
According to Dilyara Mustafayeva, the key feature of the current stage of market development is that a decline in the number of participants does not mean the market is weakening.
“The mere fact that the market has shrunk significantly in size should not be viewed as a negative. On the contrary, in many cases, this represents the natural weeding out of formal or unviable companies from the system. If we look at the financial results for 2025, we see that the non-banking segment not only survived but also demonstrated growth in profitability. This means that after several years of consolidation, the market is gradually transitioning to a more mature development model,” the expert believes.
Financial companies remain one of the most prominent segments. Today, they are the most active non-bank players, often competing on the speed, technological sophistication, and flexibility of their services. In 2025, the volume of financial services they provided amounted to UAH 327.8 billion, which is 33.8% more than in 2024.
Loans accounted for nearly 45% of this volume, factoring for 25.4%, guarantees for 9.4%, and financial leasing for 10.3%. Guarantees showed the highest growth rate—up 165% over the year. Financial leasing grew by 38.9%, loans by 17.1%, and factoring by 17.4%.
As of early 2026, outstanding debt under loan agreements with financial companies totaled 128.1 billion UAH. Of this amount, 99.2 billion UAH was owed by legal entities and 28.9 billion UAH by individuals. In addition, in 2025 alone, 16,700 factoring agreements were concluded for a total amount of UAH 83.2 billion, of which UAH 28.4 billion was traditional factoring and UAH 54.8 billion was non-traditional factoring.
The insurance market also demonstrated fairly robust growth. The assets of non-life insurers as of early 2026 amounted to UAH 63.3 billion, or 64.7% of the total assets of the insurance market. Life insurers’ assets amounted to UAH 30.6 billion. Gross premiums for non-life insurance in 2025 reached UAH 66.3 billion, while gross premiums for life insurers totaled UAH 6 billion. At the same time, in the fourth quarter of 2025, compared to the first quarter of 2022, insurance premiums for MTPL increased 5.4-fold, for CASCO—2.6-fold, for the “Green Card”—2-fold, life insurance premiums rose by 33%, and premiums for property and fire risk insurance rose by 48%. Only health insurance showed a slight decline—by 2%.
The profitability of insurance companies also deserves special attention. By the end of 2025, 62% of property and casualty insurers demonstrated a return on assets exceeding 6%, and for 34% of companies, this figure was above 10%. Among life insurers, 20% of companies remained unprofitable, but at the same time, part of the market also showed stable performance.
Credit unions, however, remain one of the most vulnerable segments. While their loan portfolio stood at 2 billion UAH at the beginning of 2022, it had shrunk to nearly 1 billion UAH as of January 1, 2026. The share of non-performing loans rose from 20% to 29%, and the ratio of operating expenses to net operating income reached 102%, meaning expenses exceeded income. This segment’s financial result for 2025 was significantly more modest than that of other players—UAH 21.6 million.
Pawnshops, in turn, continue to maintain a stable niche. In 2025, they issued UAH 16.9 billion in loans, compared to UAH 16.2 billion a year earlier. The vast majority of such loans—73–79% depending on the quarter—were issued against collateral of items made of precious metals and gemstones. Another 19–24% consisted of loans secured by equipment, while the share of other collateral, including cars and real estate, amounted to 2–3%.
An expert from “Financial Pulse” also draws attention to another important trend: the market is gradually transitioning from a cleanup phase to a phase of structured tightening of regulatory requirements. In January 2026, the NBU published its first list of significant financial companies, which included 53 institutions. These companies are subject to heightened requirements regarding corporate governance, business planning, and disclosure of information. They must bring their operations into compliance with the new rules by July 1, 2026.
According to Dilyara Mustafayeva, this means that the regulator is moving on to the next stage—not merely monitoring compliance with basic rules, but shaping a new standard for the entire non-banking segment.
“The NBU is effectively shaping a new architecture for the non-banking market. We are already talking about a long-term shift in operating standards. Stricter requirements for significant financial companies are a signal that the market is moving toward greater accountability, transparency, and alignment with European approaches. For customers, this means clearer rules of the game, and for the companies themselves—the need to either transform qualitatively or leave the market,” she concluded.
Background:
The non-governmental organization “Center for Economic Research and Forecasting ‘Financial Pulse’” was established on March 2, 2015, with the aim of uniting the efforts of participants and experts in Ukraine’s financial market to promote its development and improvement.
Goals that the Center’s activities will help achieve:
Improving the quality of the regulatory framework governing the financial market and eliminating regulatory issues that hinder its full development
Increasing the transparency of financial institutions’ activities
Developing new market instruments and operating mechanisms, including through the adoption of best international practices
Improving the financial literacy of the population
Promoting the implementation of economic reforms, including through financial decentralization
Promoting the development of entrepreneurship, etc.
Center website: http://finpuls.com/
Social media: https://www.facebook.com/finpulse.center/
