The National Bank of Ukraine (NBU) has extended the
powers of authorized banks so that they will manage the regulator’s cash
reserves more efficiently.
In particular, authorized banks will be able to:
add to the stored
cash reserves the bundles of banknotes to be recounted that they accept from
record and process them separately.
In addition, the procedure for application and
authorization has been changed. Moreover, deadlines for cash recounts have been
extended, which creates favorable conditions for authorized banks to manage the
cash reserves that they store.
In order to mitigate their operational risk,
authorized banks have to develop a contingency plan to organize the handling of
the cash reserves that they store. This plan is subject to approval by the NBU,
and regular tests and updates based on the outcomes of such tests.
The NBU will be entitled to impose penalties on
authorized banks in case of repeated violation of terms of storing the NBU’s
Relevant amendments were made to the Regulation On
Transferring Cash Reserves to Authorized Banks for Storage by NBU
Board Resolution No. 112 dated 23 October 2018 (hereinafter –
Resolution No. 112).
Resolution No. 112 comes into effect on 1
In addition, on 1 January 2019, the paragraphs 
come into effect concerning:
- conclusion of an
amended agreement on storing the cash reserves of the NBU
- capability to add
the cash to be recounted to the stored cash reserves
- imposition of penalties on authorized banks.
The Regulation On Transferring Cash Reserves to
Authorized Banks for Storage has been developed to support the implementation
of the Policy on Cash Circulation in Ukraine ,
which provides for transition from the current partial control to the
delegation cash cycle model.
The delegation cash cycle model implies that the NBU delegates some of
its regional activities to other market participants – banks or cash-in-transit