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NBU Cancels Decision to Raise Required Provisioning Ratios

NBU Cancels Decision to Raise Required Provisioning Ratios

As previously announced, the National Bank of Ukraine has returned the required provisioning ratios to the levels that were in effect before the central bank made its February decision to raise them.

Thus, as before:

  • The required provisioning ratio for banks for hryvnia demand deposits will be 0% (down from the previously anticipated increase to 2%).
  • The required provisioning ratio for FX deposits will be 10% (down from the expected increase to 12%).

This decision will enable banks to use additional liquidity during martial law and therefore continue to maintain an adequate level of liquidity in the banking system.

Said changes were approved by NBU Board Decision No. 114–D On Amendments to NBU Board Decision No. 752–D dated 23 November 2017 dated 8 March 2022, and are effective from 10 March 2022.

For reference

All data on the size of required provisions made by banks are available here.

The increase in required provisioning ratios for banks, approved on 1 February 2022, was to have taken effect on 11 March 2022, when the provisioning period would normally have begun under the regular provisioning procedure.

 

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