RESOLUTION OF BOARD OF THE NATIONAL BANK OF UKRAINE

of April 26, 2018 No. 44

About approval of Changes in Regulations on use of standard instruments of regulation of liquidity of bank system by the National Bank of Ukraine and cancellation of the resolution of Board of the National Bank of Ukraine of December 27, 2017 No. 144

According to Articles 6, of 7, of 15, of 25, 42 and 56 Laws of Ukraine "About the National Bank of Ukraine", for the purpose of effective use of standard instruments of regulation of liquidity of bank system the Board of the National Bank of Ukraine decides:

1. Approve Changes in the Regulations on use of standard instruments of regulation of liquidity of bank system by the National Bank of Ukraine approved by the resolution of Board of the National Bank of Ukraine of September 17, 2015 No. 615 (with changes) which are applied.

2. Repeal the resolution of Board of the National Bank of Ukraine of December 27, 2017 No. 144 "About approval of Changes in Regulations on use of standard instruments of regulation of liquidity of bank system by the National Bank of Ukraine".

3. To department of the public markets (Ponomarenko S. V.) after official publication to inform banks of Ukraine information on adoption of this resolution.

4. To impose control over the implementation of this resolution on the vice-chairman of the National Bank of Ukraine Chury A. E.

5. The resolution becomes effective from the date of, its official publication following behind day, except Item 1 of this resolution which becomes effective since August 1, 2018.

Approved by the Resolution of Board of the National Bank of Ukraine of April 26, 2018 No. 44

Changes in Regulations on use of standard instruments of regulation of liquidity of bank system by the National Bank of Ukraine

1. In the Section I:

1) in Chapter 1:

in Item 2:

state subitem 1 in the following edition:

"1) pool cost - the amount which is determined by multiplication of fair value of the assets (property) entering pool by adjusting factors;";

add Item after subitem 1 with new subitem 1-1 - the following content:

"1-1) limiting interest rates - the low interest rate established by National Bank when carrying out the percentage tender for maintenance of liquidity on which requests of banks for participation in this tender, or the high interest rate established by National Bank when carrying out the percentage tender for placement of deposit certificates on which requests of banks for participation in this tender are satisfied are satisfied;";

6, of 9, 10 to state subitems in the following edition:

"6) adjusting factor - the coefficient determined by National Bank for each asset (property) provided by bank which is provided as a deposit on refinancing transactions or which is subject of transaction of direct repo;";

"9) transactions with own debt obligations - transactions of National Bank on placement, the address and repayment of deposit certificates;

10) transactions on refinancing of banks - transactions on provision to banks of the credits in the procedure established by National Bank;";

in subitem 11 to exclude the word "credit";

state subitem 16 in the following edition:

"16) asset pool (property) - set of the assets (property) provided by bank for ensuring accomplishment of obligations according to the general credit agreement in such a way that pledge of such assets (property) extends to all obligations of bank on the operating and future credits overnight and to refinance credits (further - pool);";

add Item after subitem 19 with new subitem 19-1 - the following content:

"19-1) total debt - the amount of all loans on transactions of refinancing granted to bank according to this Provision and outstanding at the time of implementation of calculation of cost of pool including interests on credit overnight, for all term of use of short-term loan of refinancing (without already paid interests), and also percent in three months of use of long-term loan of refinancing calculated at current interest rate;";

2) in Chapter 2:

add Item 7 with the new subitem of the following content:

"5) the bank is not referred to category problem (in case of decision making about liquidity support of bank from one to five years).";

to add the subitem 4 of Item 12 with words ", creating pool cost";

in Item 13:

the words "the assets (property) determined by it" shall be replaced with words "pool of the assets (property) determined by it";

after words of "fair value" to add with words "assets (property) which create asset pool (property) on refinancing transactions or is subject of transaction of direct repo";

14, 15 to state Items in the following edition:

"14. The size of adjusting factors which is applied to assets (property) which create pool for carrying out transaction on refinancing changes daily.

The size of adjusting factors which is applied to the securities which are subject of transaction of direct repo does not change during transaction term.

15. The National Bank before inclusion in asset pool (property) which are offered by bank enters in the State register of encumbrances of personal estate of the data on encumbrance of assets (property) which create pool, and is the key according to the general credit agreement, and also checks in the State register of encumbrances of personal estate lack of other encumbrances (except encumbrance of National Bank on refinancing transactions) for the assets (property) offered by bank for inclusion in pool.";

exclude Item 16.

2. State the Section II in the following edition:

"II. Transactions on refinancing of banks

3. General terms of carrying out transactions on refinancing of banks

18. The National Bank performs transactions on refinancing of banks by provision to banks:

1) the credits till next working day (the credits overnight);

2) refinance credits by tendering process on maintenance of liquidity of banks for up to 14 days and for up to 90 days (further - short-term loans of refinancing);

3) refinance credits by tendering process on maintenance of liquidity of banks from one to five years (further - long-term loans of refinancing).

19. The National Bank performs transactions on refinancing of banks according to the general credit agreements signed with banks and provides carrying out them by means of program technological support of National Bank.

20. The board of National Bank at meetings concerning monetary policy after consideration by Committee on monetary policy of National Bank quarterly determines frequency of tendering process by maintenance of liquidity of banks by provision of long-term loans of refinancing, amounts of refinancing and term of provision of long-term loans of refinancing.

21. National Bank overnight and refinance credits on the security of pool which can consist of such asset types (property) grants to banks the loans:

1) government bonds of Ukraine (bonds of internal state loans of Ukraine, bond of external state loans of Ukraine, target bonds of internal state loans of Ukraine);

2) deposit certificates;

3) bonds of international financial institutions (which issue is performed according to the legislation of Ukraine);

4) foreign currency (US dollars, euro, English pounds sterling, Swiss francs, Japanese yens).

22. Government bonds of Ukraine, the bond of international financial institutions and deposit certificates which enter pool shall be in property of borrowing bank and not be the encumbered any other obligations, except for obligations to National Bank on refinancing transactions.

The foreign currency which is part of pool shall be placed by bank into accounts of National Bank as security deposit without interest payment on such deposit.

23. Assets (property) begin to be considered in pool cost after their blocking for benefit of National Bank in system of depositary accounting of securities and/or system of quantitative accounting of SERTIF and/or receipt of foreign currency into the account of National Bank, and also their encumbrance in the State register of encumbrances of personal estate.

24. Government bonds of Ukraine, the bond of international financial institutions and deposit certificates in 10 working days before the term of their repayment are not considered in pool cost.

Securities which repayment of nominal value is performed by separate parts according to the schedule of their repayment in 10 days prior to repayment of the following part of nominal value begin to be considered in the cost of asset pool (property) at fair value taking into account adjusting factors without that part of nominal value which will be paid by the issuer in the next repayment date according to conditions of their release.

The National Bank excludes from pool and will unblock securities and deposit certificates which because of approach of term of their repayment are not considered in pool cost if pool cost after their exception is sufficient for debt total covering.

25. The bank has once a day the right to perform inclusion and/or exception, and/or replacement of assets (property) which create pool, only those asset types (property) which are determined in Item 21 of Chapter 3 of the Section II of this provision.

26. The request of bank for inclusion/exception/replacement of assets (property) which create pool, and the message of National Bank on satisfaction of the request for inclusion/exception/replacement of assets (property) which create pool is the basis for implementation by National Bank of measures for inclusion/exception/replacement of assets (property) which create pool.

27. Inclusion/exception/replacement of assets (property) which create pool is performed by blocking before of the new assets (property) provided by bank and at their expense increases in amount and cost of pool with the subsequent unblocking of assets (property) which are subject to exception of pool.

28. The bank during any working day of week submits to National Bank applications for inclusion of assets (property) in pool/exception of assets (property) from pool/replacement of assets (property) from pool. The applications submitted after certain time are processed no later than the next working day.

29. Replacement of exception of assets (property) of pool is performed provided that pool cost after satisfaction of the request of bank exceeds total credit debt or is equal to it.

30. The National Bank does not consider the request of banks for receipt of the credit overnight and/or refinance credits if the bank at the time of submission of such request did not create pool according to the procedure, determined by Items 23, of the 26th Chapter 3 of the Section II of this provision, in sufficient cost for ensuring accomplishment of the obligations on refinancing transactions, taking into account the submitted request.

31. National Bank overnight and short-term loans of refinancing on interest rate which is determined by the regulatory legal act of National Bank concerning percentage policy grants the loans and is not subject to adjustment during the term of use of such credits.

The interest rate for long-term loans of refinancing is established at the level not below discount rate of National Bank plus two percent points and changes during the term of use of the credit in case of change of discount rate of National Bank. Date with which the interest rate for long-term loans of refinancing changes the 15th, following after month in which discount rate of National Bank changed is. The National Bank notifies banks which obtained long-term loans of refinancing, about interest rate realignment on such credits not later than 15 calendar days before date with which the new interest rate will be applied.

32. The National Bank has the right to grant to bank the loan overnight and/or short-term loan of refinancing and/or long-term loan of refinancing on repayment of earlier obtained credit overnight and/or short-term loans and/or long-term loans of refinancing on the security of pool if bank overnight and/or submitted the loan application for participation in the tender for maintenance of liquidity of banks which carrying out falls on loan repayment period overnight and/or refinance credits.

Number of times of receipt of the credit by bank overnight and/or short-term loan of refinancing and/or long-term loan on repayment of earlier obtained credits is not limited.

During check of sufficiency of cost of pool in case of submission by bank of the loan application and the direction of part of the funds for repayment which are earlier received the credit overnight and/or refinance credits, this part is subtracted (is calculated) from the amount of the submitted application.

33. The term of use of the credit overnight and refinance credit for charge of percent begins from the date of receipt of funds on bank account (in case of loan granting on repayment of earlier obtained credit - from the date of carrying out such transaction) and comes to an end in the day preceding date of return.

34. The National Bank on transactions of refinancing exercises control and check of the pledged assets (property) creating the pool cost, namely their impairment according to normative and legal and administrative acts of National Bank concerning determination of fair value. The National Bank if the percentage ratio of cost of pool to total debt becomes equal or smaller, than limit, is calculated as 100% minus limit of reduction of amount of the pledged assets (property), demands from banks of entering of additional assets (property) into pool and/or partial early repayment of the credits for the purpose of reduction by bank in pool cost compliance to total debt.

35. The National Bank has the right to initiate early accomplishment of obligations by bank on transactions of refinancing within two working days in case of approach at least of one of the following conditions:

1) identification of the facts of provision by bank of unreliable information and the reporting which had influence on decision making about loan granting according to this Regulations, and on powers of persons which from bank name sign all documents which are filed by bank to National Bank according to this Provision;

2) not reduction by bank in compliance with the established requirements of cost of pool of the pledged assets (property) in case of its impairment;

3) failure to carry out of conditions of the general credit agreement by bank.

4. Procedure for loan granting overnight

36. The National Bank daily means of program technological support and system of e-mail of National Bank (further - system of e-mail) sends to banks the message on conditions of carrying out transaction on loan granting overnight the next working day with indication of loan interest rate overnight with placement of this information on the page of official Internet representative office of National Bank.

37. The bank in case of need of maintenance of liquidity has the right during any working day of week till certain time to submit to National Bank the loan application overnight. The requests submitted by banks are checked for compliance of observance of requirements of this provision and satisfied in process of their receipt. The requests which did not undergo testing are rejected.

The requests which arrived after the put time are not accepted, except for the reasons of technical nature which arose in National Bank.

38. The National Bank based on the general credit agreement, the request of bank and the message on satisfaction of the request of bank for receipt of the credit overnight provides transfer to bank of means on granted loan overnight.

5. Procedure for loan granting of refinancing

39. The National Bank grants to banks refinance credits by carrying out the quantitative or percentage tender for maintenance of liquidity of banks. The message on carrying out the quantitative or percentage tender for maintenance of liquidity of banks goes weekly means of program technological support and system of e-mail with placement of this information on the page of official Internet representative office of National Bank.

40. Tenders for maintenance of liquidity of banks are held weekly with such frequency: three weeks in a row - loan granting of refinancing for up to 14 days; one week - loan granting of refinancing for up to 90 days.

Provision of long-term loans of refinancing is performed with the frequency determined on board meetings of National Bank concerning monetary policy after consideration by Committee on monetary policy of National Bank.

41. The National Bank announces the schedule of tendering process on maintenance of liquidity of banks the next quarter by system of e-mail with placement of this information on the page of official Internet representative office of National Bank.

The National Bank depending on situation in the monetary market and liquidity situations of banks has the right to change frequency and priority of tendering process on maintenance of liquidity of banks, and also to announce extraordinary tenders for maintenance of liquidity of banks about which to banks it is reported by program technological support and system of e-mail with placement of this information on the page of official Internet representative office of National Bank.

42. The bank which requires maintenance of the liquidity has the right to submit to National Bank by the corresponding program technological support the application for participation in the tender for maintenance of liquidity of banks without subsequent entering into it of any changes. The bank can submit several applications for participation in the percentage tender for maintenance of liquidity of banks with indication of different interest rates.

43. The requests which arrived after time established for participation in the tender for maintenance of liquidity of banks are not accepted, except for the reasons of technical nature which arose in National Bank.

44. The National Bank when carrying out the quantitative tender for maintenance of liquidity of banks without announcement of total amount of means checks the submitted applications of banks for compliance of observance of requirements of this provision and satisfies them in full in process of their receipt.

Distribution of the means offered for carrying out the quantitative tender for maintenance of liquidity of banks with the announcement of total amount of means is performed according to the applications for participation in this tender submitted by banks before the expiration of the amount offered on this tender. If the liquidity of banks of the amount offered on the quantitative tender for maintenance is not enough for satisfaction of all requests of banks, then funds at the announced price are distributed between all banks in proportion to the submitted applications. The volume of credit of refinancing is rounded to whole.

45. Banks on condition of carrying out by National Bank the percentage tender for maintenance of liquidity of banks independently offer interest rate to within two signs after comma on which they agree to receive means, but not below, than discount rate of National Bank - on short-term loans of refinancing and not below, than discount rate of National Bank plus two percent points - on long-term loans of refinancing.

Applications for participation in the percentage tender for maintenance of liquidity of banks are satisfied according to decrease in the interest rate offered in them, starting with the highest, and further gradually before the termination of the offered amount of means which are offered for carrying out the percentage tender or limiting achievement of interest rate, or satisfaction of all requests of banks.

46. Extreme level of interest rate is determined according to the regulatory legal act of National Bank concerning percentage policy of National Bank.

47. Funds are distributed between banks in proportion to the submitted applications if two or several participants of the percentage tender for maintenance of liquidity of banks offer identical interest rate which matches with limiting interest rate, and amount of the offered means which remained is insufficient for satisfaction of all requests of banks on limiting interest rate. Volume of credit is rounded to whole.

48. Results of the held tender for maintenance of liquidity of banks are reported to banks which took part in it, and are placed on the page of official Internet representative office of National Bank.

49. The National Bank based on the general credit agreement, the request of bank for participation in carrying out the tender for maintenance of liquidity of banks and the message on satisfaction of applications for participation in the tender for maintenance of liquidity of banks (in full or partially) provides transfer to bank of means on granted loan of refinancing.

50. The bank has the right ahead of schedule fully or partially to return refinance credit and interest for using to them, having notified on it National Bank.".

3. In the Section III:

Item 52 of Chapter 6 to state 1) in the following edition:

"52. The National Bank performs operations of direct repo with government bonds of Ukraine or bonds of international financial institutions (which issue is performed according to the legislation of Ukraine) based on the general repurchase agreement signed with bank. Transactions of direct repo are performed by National Bank with transition of the property right to securities.

Transactions of direct repo with government bonds of Ukraine are performed by National Bank with observance when calculating the principle "payment against delivery of securities".

Transactions of direct repo with bonds of international financial institutions are performed by National Bank with observance when calculating the principle "delivery of securities without payment.";

2) in Chapter 7:

state Item 56 in the following edition:

"56. The bank having intention to make the transaction of the direct repo having the right to submit to National Bank the application for carrying out transaction of direct repo in which offers terms about the term of carrying out transaction of direct repo within the term determined by Item 54 of Chapter 6 of the Section III of this provision, its amount, quantity and code (the international identification number) of securities, other parameters.

On transaction of direct repo purchase price by National Bank of securities is their fair value taking into account adjusting factors. The price of repurchasing (redemption) of securities by bank is established so that the income for the term of transaction of direct repo was equal to the interest income added on purchase price at the rate determined as discount rate of National Bank plus two percent points";

exclude Item 58;

state Item 59 in the following edition:

"59. Money transfer on transaction of direct repo with government bonds of Ukraine and bonds of international financial institutions is performed according to the procedure, established by the legislation, normative and legal and administrative acts of National Bank concerning depository and clearing activity.";

exclude Item 60.

4. In Chapter 9 of the Section IV:

1) in the paragraph the second Item 69 and paragraph one of Item 70 of the word of "program technological support of system of e-mail" shall be replaced with words "program technological support, systems of e-mail";

Item 74 to state 2) in the following edition:

"74. The National Bank when carrying out the quantitative tender for placement of deposit certificates without announcement of total amount of the funds raised by National Bank satisfies requests of banks in full.

The National Bank when carrying out the quantitative tender for placement of deposit certificates with the announcement of total amount of the funds raised by National Bank satisfies requests of banks:

1) in full if the announced amount of attraction of financial resources is more, than the amount of means specified in requests of banks;

2) in proportion to the applications submitted by banks with rounding to bigger whole if the announced amount of attraction of financial resources is less, than the amount of means specified in requests of banks.".

5. In the Section VI:

1) in Chapter 13:

94, 95 to state Items in the following edition:

"94. The National Bank exercises control of timely return of means by banks on transactions of refinancing and interest payment on them, the return redemption of securities on transaction of direct repo, and also behind accomplishment by banks of all conditions of the signed general agreements.

95. The National Bank if the percentage ratio of cost of pool to total debt becomes equal or smaller, than limit which is calculated as 100% minus limit of reduction of amount of the pledged assets (property) exposes the requirement to bank about inclusion in pool of additional assets (property) for the purpose of reduction by bank in compliance with the established requirements of cost of pool.

The National Bank exposes the requirement to bank about partial early repayment of credit debt and interest payment for use of them in case of failure to carry out to them within two working days of the requirement about inclusion of additional assets (property) in pool.

The National Bank has the right to apply the preferential and unconditional right on write-off in indisputable procedure for debt from correspondent account of bank in National Bank in the amount exceeding pool cost, being guided by article 73 of the Law of Ukraine "About the National Bank of Ukraine", in case of failure to carry out / improper execution by bank at the scheduled time requirements of rather partial early repayment of credit debt and interest payment for use of them.";

in paragraph one of Item 96 of the word "and to the general repurchase agreement", "/direct repo" to exclude;

state Items 98-101 in the following edition:

"98. National Bank, being guided by article 73 of the Law of Ukraine "About the National Bank of Ukraine", in case of non-execution or improper execution by bank of the requirement of National Bank for payment in certain time of overdue debt of bank has the right to apply the preferential and unconditional right on write-off in indisputable procedure for debt from bank accounts and/or performs alienation of the assets (property) creating the cost of pool and are in pledge as providing requirements of National Bank, and meets the requirements for the sales revenue account by sale of the pledged assets (property) which create pool, and/or their acquisitions in property and/or receipts of means from their repayment / early repayment.

The National Bank is acquired in property by pledge subject at fair value, determined for date of acquisition in property (with rounding to bigger whole).

Implementation of actions for realization and/or transfer in property and/or receipt of means from repayment of subject of pledge, and also shortage of the means received from realization and/or transfer in property and/or receipt of means from repayment of subject of pledge for debt repayment of bank does not exclude possibility of indisputable write-off of funds from bank accounts before complete repayment of all debt to bank.

99. The National Bank after two working days from the date of failure to carry out of obligations of the general repurchase agreement by bank according to the return redemption of securities refuses carrying out the second part of transaction of direct repo and offers the securities which are not redeemed by bank for realization in the stock market.

100. The National Bank transfers the amount of means which exceeds debt on transactions of the refinancing/obligation of bank on the second part of transaction of direct repo into correspondent account of bank if the means received from realization of subject of pledge/transaction of direct repo or repayment of deposit certificates exceed debts/obligations on these transactions.

The National Bank in case of accomplishment of obligations by the second part of the transaction of direct repo at the expense of the means received from implementation of the securities which are subject of transaction of direct repo, and availability of excess of not sold securities, returns them to bank by transfer into account in securities of bank.

101. The National Bank in case of failure to carry out by bank within two working days of conditions of the general credit agreement has the right to initiate early return by bank of all means received by it on refinancing transactions and to apply the preferential and unconditional right on write-off in indisputable procedure for these funds from bank accounts and has the right to implement / acquire the assets (property) exposed by bank in property.";

Chapter 14 to add 2) with new Item of the following content:

"104. Implementation of the tool on maintenance of liquidity of banks from one to five years will be performed after completion of the corresponding program technological support and refining of conditions of use of this tool.".

It is approved: Vice-chairman of the National Bank of Ukraine

A.E.Chury

 

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