The National Bank has increased banking standards of mandatory reserve
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The National Bank increases the standards of mandatory reservation by banks for the funds of legal entities based on the term.
It is reported press service of the NBU.
“This is necessary, in particular, to further minimize the risks of structural liquidity surplus in the banking system and reduce market distortions,” the regulator explained.
The new regulations will come into effect on September 11. Thus, mandatory reserves for time funds and deposits of legal entities (except for other banks) will be equal to 10% in national currency (currently 0%), and in foreign currency – 20% (currently 10%).
Analogous standards of mandatory reservation by banks apply to funds on demand and funds on current accounts of legal entities.
The National Bank explained that the content of the reserve requirement instrument is that the bank is obliged to reserve funds on its correspondent account in the amount defined as a certain percentage of its obligations (reserve norm) and takes into account the share of reserve requirements , which the bank covers at the expense of the benchmark OVDP.
The corresponding amount must be formed on average during the reservation period. This makes it possible to smooth out possible unpredictable liquidity fluctuations, while ensuring the effective use of the instrument itself for its intended purpose – limiting part of the free liquidity of the banking system.
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