Among the internal (non-autonomous) factors affecting the NBU

1:10 AM    

Among the internal (non-autonomous) factors affecting the NBU on liquidity of the banking system, along with currency interventions, should be made mandatory reserve requirements. They are an in demand for liquidity of the banking system and directly affect it through the Central Bank reserve requirement rate. Note that on 20 November 2007 in accordance with the Decree of the National Bank of Ukraine of 07.11.2007 № 403 "On regulation of the monetary market" in the banks' liabilities, subject to compulsory redundancy, includes funds borrowed by banks from non-resident banks and financial institutions, non-residents [14]. The purpose of this decision - promoting positive change in the structure of the active-passive operations of banks and the gradual restriction of the volume of economic methods of raising funds abroad and enhance the attractiveness of the operations of banks in national currency. As a result, the demand for liquidity of banks to create mandatory reserve requirements, thus reducing the excess free liquidity of the banking system. In addition to strengthening the role of compulsory reserve requirements in the regulation of the monetary market, the National Bank of Ukraine has adopted a number of other measures designed to eliminate the growth of liquidity risks arising from the deterioration of the structure of the active-passive operations of banks. Thus, in order to support banks' regulatory capital levels sufficient to cover the currency risk of liquidity the NBU Board Resolution of 17.12.2007, the changes have been made (in force since 13 February 2008) of the Regulations "On the order of regulation of banks in Ukraine , "which dealt with the calculation of regulatory capital adequacy standard / pay (H2) in the weighing of long-term active operations carried out in excess of the timing of the placement terms of fundraising, the hazard ratio for 50% and accounting for currency risk, measured by the total amount of open foreign exchange position of the bank for all foreign currencies and precious metals. Category: Liquidity of the banking system of Ukraine