Why are Ukrainian banks so profitable during war?
Ukraine’s banks are flush with cash. An influx of foreign aid, high interest rates on government bonds, pay rises for soldiers, and central bank policies after the start of the full-scale invasion boosted the sector's profits to 40.5 billion hryvnia ($1 billion) in the first three months of 2024, 19% higher than the same period last year. The banking sector has turned its fortunes around after hemorrhaging money in the first few months of Russia’s full-scale invasion. Back then, economic activity ground to a halt, international allies hesitated over foreign aid, and Russian troops occupied vas...