Ukraine’s financial sector remains bank-centred, highly fragmented, vulnerable and largely non-transparent. Approximately eighty percent of financial assets are controlled by banks where more recent reforms exposed systemic weaknesses, institutional insolvencies and practices that are riddled with abuse. The result has eroded public confidence in banks and in the regulator’s prudential supervision and left a banking sector where more than 52% of the system’s assets are state-owned/controlled. Financial, regulatory and legal reforms for the non-bank sector are still lagging. A result is an excessive number of small, inefficient, often captive and non-transparent financial intermediaries that hamper competition and market development and impede investment flows (domestic and foreign) into Ukraine’s financial sector.