KIEV, July 30 – The efficiency of banks in Ukraine is falling in the light of growth in interest expenses over incomes, the Credit-Rating agency reported.

"Only in Q1 2008, the coefficient of efficiency of banks' activities fell by 17% year-over-year. The main reason is the growth in interest expenses over incomes, which is mainly linked with a rise in the cost of credit," the agency said.

The coefficient of efficiency of banks' activities indicates the level of coverage of common administrative expenses by the operating profit and is applied to set the level of the payout of administrative expenses through conventional-permanent incomes from key activities and the possibility of banks to increase expenses on their development.