Ukrainian banks need to form additional mandatory reserves of UAH 73B.

The National Bank has increased mandatory reserve requirements for banks for funds on demand and funds on current accounts. The NBU informed financial institutions that from February 11, reserve standards in national currency will increase from 5% to 10% and in foreign currency from 15% to 20%. On the other hand, for term funds in the accounts of legal entities and individuals, the mandatory reserve standard will not change and will remain at 0% in the national currency and 10% in foreign currency. According to the regulator’s estimates, the total volume of mandatory reserves banks will have to gather will increase by approximately UAH 73B. As a result, the National Bank expects that both rates on hryvnia assets and the share of time deposits in the banking system will increase.