The National Bank is expanding the list of benchmark domestic government loan bonds, which banks can use to cover part of the required reserves (benchmark loan bonds).
This is stated in the message of the NBU, the Ukrainian News agency reports.
Thus, from October 11, 2024, loan bonds with identification numbers (ISIN) UA4000232607 and UA4000232615 will be added to the list of benchmark loan bonds, the first placement of which was carried out by the Ministry of Finance of Ukraine on September 3, 2024.
Such papers can cover up to 60% of the amount of required reserves for the relevant maintenance period.
Such a decision will further contribute to increasing activity at auctions of the Ministry of Finance of Ukraine for the placement of loan bonds, which is important for ensuring financing of the state budget exclusively on an emission-free basis.
From January 11, 2023, banks have been given the opportunity to include a specified list of benchmark loan bonds in covering up to 50% of the required reserves.
The relevant list is determined by the National Bank, taking into account the proposals of the Ministry of Finance of Ukraine.
From October 11, 2024, it will contain thirteen issues of securities, namely: UA4000227094, UA4000227102, UA4000227185, UA4000227193, UA4000227201, UA4000227490, UA4000228043, UA4000228381 4000228811 UA4000229116, UA4000232177 and new UA4000232607 and UA4000232615.
As the Ukrainian News agency earlier reported, reserve requirements are one of the traditional tools of central banks.
Its content is as follows: the bank is obliged to reserve funds on its correspondent account with the central bank in the amount, which is defined as a certain percentage of its obligations (reserve ratio) and takes into account the share of required reserves that the bank covers at the account of the benchmark loan bonds.
This amount must be formed on average during the reservation period.
This makes it possible to smooth out possible conjunctural (unpredictable) fluctuations in liquidity, while ensuring the effective use of the instrument itself for its intended purpose - limiting part of the free liquidity of the banking system.
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