The National Bank of Ukraine (NBU) has decided to abolish the requirement to keep obligatory reserves which banks are to store in correspondent accounts in the central bank every day as of the beginning of the new operation day, according to a posting on the NBU's website.

"Each bank had to keep 40% of the amount of funds subject to mandatory reservation and storage on the correspondent account of the central bank. According to the decision of the NBU Board, this figure will be reduced to 0%," the NBU said.

Accordingly, the National Bank also abolished the requirement regarding the permitted number of cases of reducing the daily balances of mandatory reserves on the correspondent account in the central bank during three retention periods.

The period of retention of required reserves remained from the 11th of the current month and to the 10th day of the following month.

In the future, banks when meeting the requirements for mandatory reserves will be required to comply with the established reserve requirement only on average for the relevant period of retention. Mandatory reserve ratios are still 6.5% for deposits of companies and individuals in national and foreign currencies repayable on demand, as well as funds on current accounts, and 3% for fixed deposits of companies and individuals in national and foreign currencies.

The amendments are approved in NBU Board decision No. 752-rsh dated November 23, 2017 and will take effect on December 25, 2017.