NATIONAL BANK OF UKRAINE BOARD
RESOLUTION № 319
October 11
On Additional Measures concerning Banking Activities
To neutralize the effect of the external financial crisis and assure the banking system stability, to protect the interests of depositors and other creditors of banks, governed by Articles 7, 15 and 55 of the Law of Ukraine “On the National Bank of Ukraine” and Articles 66 and 67 of the Law of Ukraine “On Banks and Banking”, the National Bank of Ukraine Board
has resolved:
To introduce the following additional measures concerning activities of banks (in accordance with the Addendum):
1. In the area of monetary market regulation and banks’ liquidity support
1.1. To expand the scope of banks’ liquidity support through the programs of financial recovery.
Such credit may be granted for a period up to one year under less than 15% per annum, in an amount of up to 60% of the regulatory capital of bank and within the limits of 90% of the collateral provided by the bank.
Bank’s real estate and title of ownership under the agreements for the credits previously granted to entities in the national and foreign currency (standard and under control) may be left as the collateral for such credit. The collateral for these credits shall be the pledge (mortgage) of real estate, including the integral property complexes of the borrower, guarantees and sureties of other banks, internal and external government bonds, local bonds, corporate rights and bonds of enterprises and other economic agents publicly traded in the market. The list herein is not comprehensive, and the banks may offer the National Bank of Ukraine other highly liquid collateral.
1.2. Taking into account the requirements of Article 35 of the Law of Ukraine “On Banks and Banking” concerning responsibility of the owners of significant share in a bank for the capital adequacy, banks shall demand (seek) the liquidity retention first of all by the owners of significant participation.
1.3. To determine, that banks shall make mandatory reserves with taking into account the cash balances in the national currency and internal government bonds due to mature during the reporting calendar year.
2. In the area of transactions with assets and liabilities the banks shall:
2.1. Limit the transactions with assets from 13.10.2008 to the volume as achieved on this date. Such limits shall not be applied to the transactions with the state securities, deposit certificates of the National Bank of Ukraine and transactions in the inter-bank market. Keep the indebtedness under the foreign currency loans to counterparties with no foreign currency income within the volume achieved on the abovementioned date.
2.2. Ensure ongoing daily monitoring of adherence to the established limits.
2.3. Take into account that such actions as refinancing of delinquencies by disbursement of new loans, groundless rollovers, failure to furnish the borrower with information about the total loan cost, changing of the loan cost in the credit agreement that does not comply with the changes in the discount rate of the National Bank of Ukraine, shall be qualified as a breach of Article 49 of the Law of Ukraine “On Banks and Banking” and lead to inevitable enforcement measures.
2.4. Accept payment orders for money transfer to be executed within the account balance as on the date when the order is received and transfer the funds to the recipient on the next business day after the order is received.
2.5. Fulfill their obligations under all types of the agreements executed in order to attract funds in any currency only after maturity regardless the category of the counterparty.
2.6. Make public awareness efforts in order to prevent premature withdrawals of funds. Actively stimulate attraction of new deposits and prolongation of old ones. Execute payments immediately, provided that the product has matured.
3. In the area of timely execution of the salary, pension, scholarship and social payments:
3.1. The Banks shall ensure the following:
Uninterrupted ATMs functioning and loading them with cash;
Uninterrupted cash disbursement through the payment cards of other banks’ clients.
3.2. Immediately inform the National Bank of Ukraine of the peak periods in operations of ATMs and cash disbursement points to allow adopting the appropriate additional regulatory decisions.
4. In the area of foreign exchange operations:
4.1. the banks shall be allowed to effect operations on purchase of one foreign currency for another exclusively if both currencies are the foreign currencies of the same group of the Classifier of Foreign Currencies and Banking Metals approved by Resolution No. 34 of the National Bank of Ukraine Board of February 04, 2008 (the version of Resolution of the National Bank of Ukraine Board No 378 of October 2, 2002 registered in the Ministry of Justice of Ukraine under No 841/7129 on October 24, 2002) with amendments (hereinafter – the Classifier).
4.2. The maximum spread between the purchase and sale rates for cash foreign currency may not exceed 5.0 percent.
4.3. The authorized banks shall be allowed to effect their own operations of purchase/sale foreign currency for hryvnias within the limits set for the open foreign exchange position of the bank, provided it has the liabilities in this currency which have matured.
4.4. Attention of banks shall be attracted to the fact that purchase or exchange of foreign currency done for early execution of obligations and settlements with non-residents for import of products (works, services, intellectual property rights) not entering the territory of Ukraine from abroad or advanced payments (except for payment for critical imports) shall be qualified as a breach of the rules of foreign exchange regulation and control and will entail the enforcement measures.
4.5. Zero provision rates under the agreements executed by banks to attract foreign currency funds from non-residents for a period that equals or is less than 183 calendar days, shall be temporarily implemented.
4.6. From 01.11.2008 the mechanism for calculation of bank’s on-balance open foreign currency positions by each currency, used in foreign currency purchase and sale transactions, shall be introduced.
4.7. The banks shall be allowed to keep the foreign currency of the 1st group of the Classifier on the nostro accounts only with the banks of the countries whose currency belongs to the 1st group of the Classifier.
4.8. Hryvnia transactions through the loro correspondent accounts with the non-resident banks shall be executed only for export and import operations.
5. The Resolution shall become effective from 13.10.2008.
6. I reserve the control over execution hereof to myself.
Volodymyr S. Stelmakh
Governor