The move aims to strengthen market incentives for banks to attract term deposits of the population in Hryvnia.
The National Bank of Ukraine introduces additional measures to increase competition among banks for fixed-term deposits of the population and increase rates. This was reported on March 28 by the press service of the NBU.
From May 11, the National Bank equates the standards for the formation of required reserves (OR) of banks on deposits of individuals for up to three months with the standards of OR for the funds of individuals in the current accounts.
The standard for the formation of reserves for funds in hryvnia will be 20%, and for funds in foreign currency – 30%. At the same time, the OR ratio for deposits with a maturity of 93 calendar days will not change and will be 0% for funds in Hryvnia, and 10% in foreign currency.
The NBU noted that this step is aimed at maintaining the effectiveness of the necessary reserve mechanism and strengthening market incentives for banks to attract term deposits of the population in Hryvnia. This, in particular, will contribute to a further increase in interest rates on time deposits, and, accordingly, to strengthening the protection of Hryvnia savings of citizens from inflationary depreciation.
According to the NBU, the total amount of required reserves that banks need to build will increase by approximately UAH 17 billion.
This year, the National Bank has taken several steps to reduce risks for macro-financial stability. One of these measures is to increase the necessary reserves. In January-March 2023, the NBU increased the total OR ratios for funds on demand and funds on current accounts of individuals by 20 and. n., and legal entities – by the 10th century. P.
According to the NBU, thanks to maintaining the discount rate at 25% and additional measures in the NBU, the growth of rates on new time deposits of the population in Hryvnia has been accelerated. So, in February 2023, they will be 7.7 in. taller. p. compared to June 2022 (when the discount rate was raised to 25%).
Banks that have been most active in raising rates in recent months have improved the term structure of the deposit base.
Remember, earlier the head of the National Bank, Andriy Pyshny, said that the NBU will not resort to “dangerous” money printing to finance government spending.
How much you can earn on bank deposits
news Correspondent.net on Telegram. Subscribe to our channel Athletistic
Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.