The National Bank extended the capabilities of banks in terms of short-term foreign currency liquidity management, according to regulator’s message, Finclub reports.
As reported, the balance at correspondent accounts of Ukrainian banks in non-resident banks is about USD 5 bln (predominantly in freely convertible currency), but over the year it fluctuated from USD 4.5 bln to USD 5.5 bln.
Now, banks can invest these balances in securities of non-residents while fulfilling some criteria.
The authorized bank should have the general license for attraction and placement of foreign currency on international markets, and the international financial organization or G-7 country should act as the securities issuer, the edition reports.
In addition, the issuer should have the rating not lower than "АА-"/"Аа3", confirmed by Fitch Ratings, or Standard&Poor’s, or Moody’s as of the date of bank’s acquisition of these securities.
The debt securities can be nominated in US dollars, Japanese yens, pounds sterling, Canadian dollars, and the period between the date of their acquisition and the maturity date should not exceed five years.
Banks can trade securities only with non-residents beyond Ukraine.
The National Bank considers that these amendments will allow banks to increase income from placement of currency funds and reduce credit risks, associated with currency storage on correspondent accounts of correspondent banks.
