NBU toughens requirements to formation of reserves for credit transactions by banks
The National Bank of Ukraine (NBU) has toughened requirements to the fifth group of assets that are acceptable to guarantee the credit transactions during the calculation of reserves, replacing the securities in the exchange register by the first tier listing securities, the regulator has said on its website.
The amendments to the procedure for formation of reserves to cover expenses on active bank transactions are outlined in NBU resolution No. 38 of January 28, 2016.
According to the document, from now on the fifth group of assets includes securities of the first tier listing as of the date for calculating the reserves and issued by residents, apart from securities of collective investment institutions (CIIs).
According to the amendments, banks are to prove the grounds for receiving money flows from collateral on paper.
The NBU also removed investment certificates from the list of assets that are acceptable guarantee for credit transactions during the calculation of reserves.
The resolution takes effect next day af ter it was officially published.
