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Minimum LCR of 100% as of 1 December 2019

Minimum LCR of 100% as of 1 December 2019

The National Bank of Ukraine (NBU) reminds that according to the previously released schedule, as of 1 December 2019, the minimum liquidity coverage ratio (LCR) for all currencies and foreign currencies will be increased from 90% to 100%.

The minimum level of 100% will be preserved from now on.

Please be reminded that Ukrainian banks began calculating LCR on 1 December 2018. At the beginning, the minimum foreign-currency LCR was 50%, and all-currency LCR – 80%. The statutory value of all-currency LCR and foreign-currency LCR was increased to 90% in June 2019.

For reference:

Liquidity Coverage Ratio stands for a ratio of HQLA to cover total net cash outflows over a 30-day period under the prescribed stress scenario. The ratio demonstrates bank’s short-term resilience of liquidity shocks experienced during the crisis with major retail cash outflows.

The compliance with the ratio means that a bank has sufficient liquidity to fully discharge its liabilities during a 30-day crisis period. Considering the degree of dollarization in the Ukrainian banking system, banks should abide by the LCR both in domestic and foreign currencies.

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