15:19 15.02.2017

NBU assets 10.8% up in 2016

3 min read
NBU assets 10.8% up in 2016

Assets of the National Bank of Ukraine (NBU) grew by 10.8% or UAH 91.34 billion in 2016, reaching UAH 940.6 billion.

The central bank published the preliminary data as of January 1, 2017, not taking into account the results of the external audit.

"The key growth factor was the increase of Ukraine's forex reserves by $2.2 billion or 17%, to $15.5 billion. This is reflection of the NBU's policy to boost reserves aimed at supporting macrofinancial stability," the NBU said in the press release, citing Director of the financial supervision department of the NBU Oleh Strynzha.

Assets in hryvnias fell by UAH 38.4 billion or 8%, to UAH 439 billion. The NBU said that this is linked to the thoughtful monetary policy to achieve the targeted inflation level.

Strynzha said that securities in the NBU's portfolio narrowed by UAH 10.1 billion thanks to the absence of domination of the fiscal policy over the monetary policy. The debt of banks to the central bank significantly decreased: borrowers returned refinancing credits of UAH 31.7 billion.

The NBU said that its liabilities last year slightly grew – by UAH 19.6 billion, to UAH 746 billion, including deposit certificates volume fell by UAH 21.7 billion, reaching UAH 68.2 billion as of late 2016.

"Liquidity of banks invested in NBU's deposit certificates shows that banks have extra funds that they could send to credit the economy, as the yield of deposit certificates is less than the cost of credits," the central bank said.

The NBU said that resumption of crediting, in particular, small and medium-sized enterprises (SME) is one of the goals of the banking system in 2017 and next years. The regulator said that additional capitalization of the banking system and the expected reduction of inflation of the NBU's refinancing rate would contribute to it.

"It is important to say that lawmakers should contribute to the restoration of crediting and pass bill 6027 on restoring trust of creditors and borrowers, which would considerably cut credit risks of banks when they issue new credits and the cost of credits and credit rates would fall too," Strynzha said.

Liabilities to the International Monetary Fund (IMF) in 2016 grew by 38.1% or UAH 67.15 billion, to UAH 243.3 billion. The volume of banknotes and coins turnover grew by 10.6% or UAH 32.82 billion, to UAH 341.06 billion.

Net worth of the NBU grew by UAH 71.7 billion in a year, to UAH 194.6 billion mainly thanks to profit.

The central bank said that its report for 2016 will be audited and approved by the NBU Board and Council. On April 30, 2017, profit will be distributed to the NBU's reserves and national budget of Ukraine.

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