Taking this into account should be taken urgently

With regard to the interests of the domestic economy by shifting the emphasis from the current bank lending requirements for lending to the investment needs of business entities and real sector industries, especially those that have an influence on the inflationary component stability of the hryvnia (energy, agriculture) and domestic commodity the proposal. One of the measures to stimulate the development of the investment bank lending and reduce liquidity risk is to strengthen the role of the mechanism of compulsory reserve requirements in the regulation of term and currency structure of banks raised funds through the release of the necessary reserve requirement of banks' liabilities in national currency for more than 2 years. The world practice, in particular the experience of the European Central Bank and many foreign central banks, proves the effectiveness of measures to encourage long-term component of capacity of the resource base of banks by imposing reserve requirements only on the obligations of banks for the period of execution of up to 2 years. This will not only reduce the liquidity risks associated with existing fixed-term imbalances in active and passive transactions of banks, by building long-term resource base in the national currency and improve its structure, but also to encourage banks to reduce orientation of external borrowing and dollarization in the country, will increase the long-term resource base of banks to lend to the real sector of the economy. In the deteriorating liquidity in the banking system, which is observed in October 2008, the National Bank of Ukraine, in our opinion, should consider lowering the mandatory reserve requirements. This would increase the free liquidity in the domestic banking system, reduce the volume of bank refinancing and on this basis to reduce the influence of monetary factors on inflation in the country. Category: Liquidity of the banking system of Ukraine