The NBU encourages banks to raise interest rates on household deposits.

To encourage this, beginning May 11 the National Bank of Ukraine will equate the standards for the formation of mandatory reserves by banks with individual deposits for up to three months to the criteria for mandatory reserves for the funds of individuals in current accounts.

The norm for forming reserves for funds in hryvnia is currently 20%, and for funds in foreign currency – 30%. Instead, the required reserve ratio for deposits with a maturity of 93 calendar days will not change and will be 0% for hryvnia funds and 10% for foreign currency.

As the Central Bank explained, the move aims to preserve the mechanism’s effectiveness of mandatory reserves and strengthen market incentives for banks to attract private deposits in hryvnia.