The National Bank of Ukraine continues the policy of monetary liberalization, weakening already irrelevant anti-crisis restrictions. The next softening, fixed by the Resolution of the Board of the National Bank of August 22, 2017 No. 81, came into force on August 24. This time, the changes have affected both the operations of the Ukrainian population and business, and the activities of banking institutions at the interbank level.
Firstly, due to a significant increase in the stability of the foreign exchange market and liquidity of the banking system, the limit on the issuance of funds from bank accounts of individuals through cash desks and ATMs was canceled. We remind that since September 2016, there was a restriction, according to which the depositor was able to receive no more than 250 thousand UAH in the equivalent per day (it means cash in foreign currency and banking metals).
It is assumed that this softening will positively affect the state of the foreign exchange market, promoting the increase of the level of customer confidence in banks.
The following innovation concerns the liberalization of the approach to savings (deposit) bearer certificates and implies, first, the abolition of the ban on their issuance and, secondly, the cancellation of the requirement to pay them off only by transferring funds to the account of the holder of the certificate or bearer. In addition, the current requirement for a minimum period of placement (from 6 months) is canceled.
At the same time, the National Bank has revised the exceptions to the ban on early repayment of loans and loans to the foreign creditors, adding to them cases when the shareholder of a non-resident creditor includes a foreign state or a bank. The rating assessment of this foreign state should not be lower than the category A which should be confirmed in the bulletin of one of the world’s leading rating companies (Fitch Ratings, Standard & Poor’s, Moody’s).
The resolution also assumes the calculation simplification of the daily limit for the banks on the purchase of the currency in their own position within the scope of the tod, spot and forward transactions. Such a decision should positively affect the development of currency risk insurance instruments. The National Bank continues the policy of monetary liberalization
The National Bank of Ukraine continues the policy of monetary liberalization, weakening already irrelevant anti-crisis restrictions. The next softening, fixed by the Resolution of the Board of the National Bank of August 22, 2017 No. 81, came into force on August 24. This time, the changes have affected both the operations of the Ukrainian population and business, and the activities of banking institutions at the interbank level.
Firstly, due to a significant increase in the stability of the foreign exchange market and liquidity of the banking system, the limit on the issuance of funds from bank accounts of individuals through cash desks and ATMs was canceled. We remind that since September 2016, there was a restriction, according to which the depositor was able to receive no more than 250 thousand UAH in the equivalent per day (it means cash in foreign currency and banking metals).
It is assumed that this softening will positively affect the state of the foreign exchange market, promoting the increase of the level of customer confidence in banks.
The following innovation concerns the liberalization of the approach to savings (deposit) bearer certificates and implies, first, the abolition of the ban on their issuance and, secondly, the cancellation of the requirement to pay them off only by transferring funds to the account of the holder of the certificate or bearer. In addition, the current requirement for a minimum period of placement (from 6 months) is canceled.
At the same time, the National Bank has revised the exceptions to the ban on early repayment of loans and loans to the foreign creditors, adding to them cases when the shareholder of a non-resident creditor includes a foreign state or a bank. The rating assessment of this foreign state should not be lower than the category A which should be confirmed in the bulletin of one of the world’s leading rating companies (Fitch Ratings, Standard & Poor’s, Moody’s).
The resolution also assumes the calculation simplification of the daily limit for the banks on the purchase of the currency in their own position within the scope of the tod, spot and forward transactions. Such a decision should positively affect the development of currency risk insurance instruments.