The National Bank of Ukraine has provided problem banks with access to operations to support their liquidity, corresponding NBU decree No. 83 dated February 16, 2016 on amendments to the regulations on the NBU's applying standard instruments for liquidity management in the banking system has been posted on the regulator's website.
"This will contribute to the effective implementation by the National Bank of the functions of a lender of last resort for banks," reads the report.
According to the decree, the changes exclude the provision according to which, if a bank is declared problem, the NBU initiates its early fulfillment of obligations on refinancing loans and/or repo transactions.
The National Bank also expanded opportunities for other banks to obtain funds via refinancing loans to maintain liquidity and repo operations by removing the limit of 50% of the bank's regulatory capital and 50% of the funds available for a tender for liquidity maintenance.
"Thus, obtaining resources by the banks on these operations will be limited to the existing security (government domestic loan bonds, deposit certificates, currency) and the maximum amount of tenders," the central bank added.