NBU to gradually introduce NSFR starting from Q1 2021

The National Bank of Ukraine (NBU) will introduce the net stable fundingratio (NSFR) for banks starting from the first quarter of 2021 until banks gradually reach the NSFR ratio of 100%, the press service of the regulator said on Wednesday.

"Taking into account the results of test calculations, the NBU will determine in November a schedule for banks to gradually achieve the NSFR at 100%," the central bank said.

The press service of the NBU told Interfax-Ukraine that the date of NSFR launch remained the same, but, the fulfillment of the standard by banks by 100% may be extended in time.

According to the report, the new NSFR regulation will encourage banks to rely on more stable and longer-term funding sources, such as long-term deposits, while reducing their dependence on short-term funding.

Source: www.en.interfax.com.ua