In addition, gradually increased the cost of support

Also, gradually increased the cost of supporting the banks' liquidity via refinancing operations (weighted average rate on all refinancing operations rose from 9.2% in 2007 to 15.3% for 10 months in 2008) were widely used interest rates on deposit operations, which ranged between 0.1 -10% depending on the time to raise funds and the situation in the monetary market. Such a policy has been directed? to increase the attractiveness of transactions in national currency and promote accumulation of activity of market participants, strengthening the role of the internal market in the resource base of banks and distraction on this basis public funds from the consumer market, reduce dependence on foreign borrowing of banks, reducing the risk of financial stability of the banking system, easing inflationary pressures in the country, etc. In October 2008, on the monetary market, there was tension on the liquidity of the banking system due to the global financial crisis and the effects of unfair competition - provoked artificially increased confidence to the financial condition of some banks. To stabilize the situation, National Bank of Ukraine has introduced additional measures concerning the activities of banks are reflected in the decision of the NBU Board of 11.10.2008, № 319. The main ones were aimed at empower banks to maintain liquidity through refinancing mechanisms, preventing the outflow of clients from the banking system, uninterrupted payments, temporarily limiting the deviations between the buying and selling rates of foreign currency cash, easing conditions for the formation of obligatory reserve requirements, limiting the demand of banking institutions for foreign currency, limiting the lending in foreign currency to borrowers who do not have sources of hard currency earnings, etc. Category: Liquidity of the banking system of Ukraine