Financing companies in Ukraine's defence industry has become one of the banking sector's main priorities, with lenders sharply increasing credit support for military-industrial enterprises as the country seeks to expand domestic weapons production, National Bank of Ukraine (NBU) Governor Andriy Pyshny said, reported Ukraine Business News.

Speaking about lending trends, Pyshny said Ukrainian banks had significantly expanded corporate financing, particularly for businesses operating in the defence sector, while loan approval rates had reached their highest level in a decade.

According to the central bank governor, Ukrainian lenders are now rejecting corporate loan applications at the lowest rate seen in the past 10 years, reflecting stronger confidence in business borrowers and a growing willingness to finance strategic industries.

"The increase in loans and guarantees provided to the defence industry in 2025 exceeded UAH60bn ($1.5bn)," Pyshny said.

He noted that financing for defence manufacturers had previously been provided mainly by state-owned banks. However, private lenders have increasingly entered the market, including banks that are part of international financial groups, broadening access to credit for companies supplying Ukraine's military sector.

In May, 23 Ukrainian banks representing different ownership structures signed a memorandum on expanding credit support for defence enterprises under an initiative led by the National Bank of Ukraine.

"These 23 banks actually cover 75% of the assets in Ukraine's banking system," Pyshny said, highlighting the scale of the industry's participation in the programme.

He added that Ukraine had created "a unique and very favourable system for the development of the defence sector", combining coordinated efforts by the banking industry with government support to facilitate investment in military production.

The increased focus on defence lending comes against a backdrop of sustained growth in corporate credit more broadly. According to Pyshny, overall lending to Ukrainian businesses has been expanding by more than 30% annually for the second consecutive year, marking the longest uninterrupted period of strong corporate credit growth in the past 15 years.