The national Bank of Ukraine has optimized its tools of liquidity management of the banking system, in particular, the overnight credits, direct repo transactions and refinancing loans for up to 90 days that are granted through a tendering procedure. This was reported on the official website of the regulator with reference to decree No. 90 and No. 100, which became effective on April 4, 2016.
According to the estimates of the regulator, these changes will allow banks to meet their short term liquidity needs. At the same time, increase the flexibility of liquidity regulation of the banking system is a necessary condition for the effective implementation of monetary policy within the inflation targeting regime, the transition to which is planned before the end of 2016.
In particular, the NBU provided banks the opportunity to use the mechanism rollovers — granting to the Bank a new loan for the implementation of previous commitments, which will be used to repay loans refinancing and overnight rates secured by government bonds of Ukraine and Deposit certificates of the NBU.
Also, the national Bank expanded the list of securities accepted as collateral for overnight loans and direct repo operations, allowing banks to provide as security for overnight loans and operations direct repo bonds of international financial organizations.
In addition, the NBU provided banks the opportunity to increase, decrease or substitute collateral for refinancing loans, while still was able only to reduce it in the case of a partial repayment of the loan.
As reported, the national Bank of Ukraine from February 17, this year has provided access to operations to support the liquidity of the banks classified as problematic, for the effective discharge of the functions of lender of last resort.
On 22 February, the NBU also said there are three backbone Ukrainian banks — JSC «PrivatBank», PJSC «Sberbank» and JSC «Ukreximbank» — and began stress testing the second twenty banks.
The volume of Bank debt to the National Bank of Ukraine granted refinancing loans fell in January at 3,484 billion, or 3.3%, to 102,364 bn.
In 2015 Ukrainian banks returned the NBU UAH 8.2 billion for loans to refinancing.
The national Bank of Ukraine has expanded the ability of banks needing to refinance 24.02.2016