Ukraine's nascent factoring market is dominated by just two banks and lack of awareness of the profitability of the business is hampering the sector's growth, according to a banking expert.
TAS-Kommerzbank (Kyiv) governor Borys Zenkyn said his bank accounted for 52% of the market, carrying out factoring transactions worth UAH 71.455 million (Ђ11.487m) in the first half of this year.
Kyiv's Ukrsotsbank is the other big market player, with 37% of the market. Zenkyn said PrivatBank, Poltava Bank and Brokbusinessbank had also recently entered the market, and had together taken a 10% share.
Zenkyn said the factoring market is only just forming in Ukraine and many banks had yet to recognise that profits are to be had in the business.
