Troubling symptom

The disturbing symptom of problems in the banking system's liquidity position is also the ratio of time deposits and loans granted to economic entities, which fell from 0.53 in 2003 to 0.37 in October 2008. This figure indicates that 63% of the loan portfolio of banks formed from internal resources on demand, which are known to be unstable short-term source of banks' resource base, or from sources of resource raised abroad. For comparison, time deposits, raised in the domestic market, covering 78% of bank loans in Armenia, 63% - in Azerbaijan, 71% - in Bulgaria, 52% - in Georgia, 78% - in Kyrgyzstan, 104% - in Macedonia 82% - in Moldova, 52% - in Russia. Summing up the study of factors offers the liquidity of the domestic banking system, we note that among the autonomous factors of liquidity supply is now the main dynamics of government funds in accounts with the NBU and the dynamics of cash in circulation. Among the non-autonomous factors affecting the liquidity of the banking system an important place belongs to the compulsory reserve requirements and the intervention of the National Bank of Ukraine in the foreign exchange market. Category: Liquidity of the banking system of Ukraine | Tags: alarming symptom