Raiffeisen Bank Aval JSC has become the third Ukrainian bank to provide custodial services for NBU cash reserves based upon permits issued by the regulator, supply regional banks with cash, and accept excess cash from them.
Raiffeisen Bank Aval JSC filed a written application notifying the NBU of its intent to become an authorized bank eligible to provide custodial services for NBU cash reserves and provided the regulator with the relevant information confirming its compliance with the certain criteria.
In particular, Raiffeisen Bank Aval JSC was registered on 27 March 1992 (before 25 September 2006 – Joint Stock Postal Pension Bank Aval).
Since 1 October 2005, the Bank has become a part of Raiffeisen International Bank Holding AG Group, Austria (hereinafter - the RBI Group) (since October 2010 — Raiffeisen Bank International AG). As of 31 March 2016, the RBI Group held 68% of the shares of the Ukrainian bank, and the European Bank for Reconstruction and Development held 30% of the shares.
Raiffeisen Bank Aval JSC has 25 years of experience in providing cash handling, cash-in-transit, and cash collection services applying advanced technologies recognized by international financial institutions.
Moreover, the bank has a wide network of branches operating in 22 oblasts of Ukraine. As of 1 September 2017, Raiffeisen Bank Aval JSC has 507 operating branches and 39 cash processing offices (out of them, 22 offices are in oblasts' central cities).
The Board of the National Bank of Ukraine took the relevant decision providing the the grounds for entering into an agreement between the National Bank of Ukraine and Raiffeisen Bank Aval on providing custodial services for the regulator's cash reserves against relevant collateral.
Therefore, the NBU continues delegating some of its functions performed in oblasts to other market participants viz. banks. This provides for gradual shifting from an in-house centralized cash circulation model, which is currently in place in Ukraine, to an outsourcing model.
For reference
The NBU selects the banks to be involved in custodial services for its reserves in accordance with Regulation On the Selection Procedure and Eligibility Criteria to be Met by Banks to Qualify as Custodians of NBU Cash Reserves (hereinafter – Regulation No. 389).
The banks that have submitted written applications notifying the NBU of their intent to become authorized banks and meet the criteria set out in Regulation No. 389 shall be admitted to the selection procedure.
NBU Board Decision No. 654-D On Granting Public Joint Stock Company Raiffeisen Bank Aval the Authorized Bank Status, dated 9 October 2017).
Within the framework of implementation of the Policy on Cash Circulation in Ukraine approved by NBU Board Decision No. 207-D, dated 11 August 2016.
Approved by NBU Board Resolution No. 389, dated 28 September 2016.