29 October 2018
The NBU gradually delegates storing of some of the cash
stocks to authorized banks to ensure cash supply in Ukrainian regions.
Today, authorized banks partially ensure cash supply in
most regions of Ukraine. In particular,
they provide cash to the following oblasts: Vinnytsia,
Zhytomyr, Zakarpattia, Ivano-Frankivsk, Kirovohrad, Mykolaiv, Odesa, Poltava, Rivne, Sumy, Ternopil, Kharkiv, Chernihiv,
The authorized banks’ geographical scope will soon be
expanded. By the end of 2018, the delegated cash handling model should be
functioning in almost all Ukrainian regions.
The NBU plans to own only two cash centers, in Kyiv and Lviv, that will ensure storage of banknotes and coins as
the reserve funds, cash stocks, and cash to be distributed to banks, authorized banks and third
parties of the cash circulation cycle.
The expected results of the project implementation of the
delegated cash handling model in Ukraine were discussed during the meeting with
representatives of the authorized banks at the NBU on 24 October 2018.
Viktor Zaivenko, Director of
the NBU Cash Circulation Department, commented on the changes in the country’s
cash circulation that took place due to introduction of the delegated cash
handling model and involvement of the authorized banks in storing the NBU’s
cash stocks, and said the following: “Implementation of the delegated cash
handling model in Ukraine will reduce the public cost on cash circulation and
booster the development of a competitive market for collection services.”
According to him, in January – September 2018, the NBU
distributed almost UAH 114.4 billion to banks (including the authorized banks
for storing) which was by 11.7% more compared with the same period last
year. During the nine months of 2018,
the NBU received over UAH 100.3 billion (of fit and unfit banknotes) which was
by 22.6% less compared with the same period in 2017.
At the same time, the NBU observes a growth of cash sale
and purchase in the interbank market in the current year.
Head of Division of Cash Operations, the NBU Cash Circulation Department,
informed the audience on the latest amendments to the Regulation on transfer of
cash stocks to authorized banks for storing that will soon come into effect.
The document has been supplemented with new provisions to expand the powers of
authorized banks to manage the regulator’s cash stocks more efficiently.
During the meeting, the representatives of the authorized
banks also received answers to their practical questions on management of the
NBU’s cash stocks held at their banks.
Moreover, the representatives of the authorized banks
expressed their willingness to expand their presence in the regions of Ukraine.
Since 2016, the NBU has been
implementing the Policy on Cash Circulation in Ukraine that provides for a
gradual transfer from the current partially controlled model of cash
circulation to the delegated model.
The delegated cash handling model
implies that the NBU moves its cash stocks to the authorized banks for storing
to ensure cash supply in regions.
In view of the global trends, the
transformation processes taking place at the NBU, and the implementation of the
Cashless Economy project by the NBU, the delegated cash handling model is
appropriate for Ukraine.
This model is applied in Brazil,
Finland, the Netherlands, Sweden, and the UK.
The authorized banks and ultimately
also third parties (CIT companies) will perform cash handling functions
throughout the regions of Ukraine in compliance with the rules set by the NBU
and under its control.
The NBU transfers its stocks of
banknotes and coins for storing to the authorized banks that comply with
Oschadbank JSC, CB PrivatBank
JSC, and Reiffeisen Bank Aval JSC have the status of authorized banks
eligible to provide services of storing the NBU’s cash reserves.
The following eight companies have
obtained licenses to provide collection services to banks: CIT Security LLC, Ukrainain Service Collection LLC, First Cash-in-Transit
Company LLC, O-Mega LLC, Security Firm Ahenstvo Kompleksnoi Bezbeky LLC, Diamant Security LLC, Panorama Prykarpattia
LLC, and Comservice–Bezpeka