NBU Changes Parameters for Calculating Cap on Banks’ Purchases of Three-Month Certificates of Deposit
As previously announced, the National Bank of Ukraine is making changes to the parameters for calculating the maximum volume of three-month certificates of deposit (CDs) that banks can purchase.
Specifically, effective 19 April 2019, to determine the limit on banks’ investments in three-month CDs, the growth of hryvnia household deposits with a maturity of more than 93 days will be calculated for the last 12 months, rather than since 4 April 2023, as is currently the case.
Other parameters that go into the calculation of the maximum volume of purchases by banks of three-month CDs will remain unchanged.
By NBU estimates, these changes will encourage banks to increase their portfolios of hryvnia retail term deposits, which is important for maintaining exchange rate sustainability and protecting international reserves.
Said changes were made by NBU Board Resolution No.
40 On Amendments to NBU Board Resolution No.
22 dated 24 February 2022 dated 8 April 2024, which takes effect on 19 April 2024.
