Liquidity of the banking system of Ukraine

The liquidity of the banking system is its dynamic state, which ensures timeliness, completeness and continuity of the total liabilities of the banking system and there are sufficient funds to meet the needs of economic development. Given the role played by the liquidity of the banking system to ensure its solvency and financial stability, advanced development and efficiency of the transmission mechanism of monetary policy, it represents an important control of the central bank. Management of liquidity of the banking system - a complex process of creating preconditions to ensure and maintain the optimal level of liquidity at the macro level. Optimal, in our opinion, there is a level of liquidity, which makes it possible to carry out their banking system liabilities, as well as increase the volume of banks' operations in accordance with the needs and the cycle of economic growth without creating imbalances, threats to financial stability and the development of inflationary processes in the country. In Ukraine, the liquidity of the banking system by the National Bank of Ukraine in the regulation of the monetary market through certain legal mechanisms and instruments. At the present stage of development of monetary policy in accordance with the current regulatory framework for liquidity management and the National Bank of Ukraine may use tools of bank supervision, as economic standards - particularly liquidity (immediate, current, short-term) and capital adequacy, as well as the following instruments of monetary policy: reserve requirements, interest rate policy, bank refinancing operations (overnight credits, loans of up to 14 days and 365 days), the operations of direct and reverse repurchase transactions of foreign exchange at the national (swap), a stabilization loan, operations with its own debt obligations (certificates of deposit overnight, up to 14 days to 365 days), transactions with state bonds of Ukraine, long-term loans secured by property rights to the funds a bank deposit. Regulation of liquidity in the banking system and is preceded by an analysis of factors conditioning it. The liquidity of the banking system is influenced by factors of demand for it and many external (standalone) and internal (non-autonomous) factors in its proposal. Category: Liquidity of the banking system of Ukraine | Tags: banking system liquidity