KIEV, July 13 - Unchanged since 2009, the banking system outlook is negative for Ukraine (Ca negative), reflecting extremely difficult operating conditions for banks, very likely asset-quality erosion, depletion of capital buffers and highly volatile funding conditions, says Moody's Investors Service.

"Ukraine continues to face a very serious economic, financial and political crisis. The highly stressed operating environment will continue to cause deep erosion in banks' asset quality and capital buffers, and system-wide problem loans could rise to as much as 60% of gross credit exposure from 45% at the end of 1 April 2015," Moody's said in a press release.