NBU to restore order in the Deposit market

NBU continues to work with banks in the direction of control interest rates on deposits for individuals. Photo: korrespondent.net

Through a number of initiatives in the regulation of the domestic financial sector, the national Bank of Ukraine continues to work with banks in the direction of control interest rates on deposits for individuals. Information on the availability of the recommendation to stick to the average market level of interest rates confirmed by several market players. In particular, the group of banks with foreign capital the average rates in January 2018 are about 13.7% and 3.8% per annum in national and foreign currencies, respectively. For example, Kredobank offers of 13.5%, Piraeus to 12.75%, ProCredit – 14%. Recall that recent changes in the division of banks into groups was approved by the Decision of the Committee of NBU № 444 from 29.11.17 G.

The bankers emphasized that this initiative was expected and appreciated by the banks. As commented on this information in the Forward Bank, such requirements can exacerbate the market competition for customers, as banks will need to work even more actively on improving the quality of customer service and efficiency of business processes.

“In 2017 Forward Bank successfully passed the audit of the National Bank of Ukraine. In January, we developed a work plan for 2018, taking into account the recommendations of the NBU, including the requirement for correction of the policy rates on deposits for individuals in line with the market. Previously, our business model was built on a few above-average rate relative to our competitors in the group (banks with foreign capital), as the market there was a large gap in rates. But we have already made changes to the business plan in 2018, and will gradually bring the rate of return on deposits to the average level,” – said the Chairman of the Board Forward Bank Andrey Kiselev.

Earlier, the Deputy head of the national Bank Dmitry Sologub stated that the lower interest rates on deposits will lead to cheaper loans.

PJSC “BANK FORWARD” performs all the liquidity ratios required by the NBU. So, on January 9 of this year the ratio of instant liquidity ratio (H4) made up 216,3%, at normative value – not less than 30%; the ratio of short-term liquidity (N6) has amounted to 105.3%, at normative value – not less than 60%; current liquidity ratio (H5) amounted to 177.6%, at a rate of not less than 40%.