KIEV, Nov. 2 -- Moody's outlook on the Ukrainian banking system reflects the combination of two key factors: its improving financial fundamentals and its significant structural weaknesses.

Although the banking sector has achieved substantial progress in the past few years and opportunities for further development are quite favorable, systemic risks for privately-owned Ukrainian banks - particularly deriving from rapid loan growth, low economic capitalisation, developing banking regulation and inadequate information disclosure - remain high, Moody's said.