NBU should limit use of securities by banks to stimulate lending – NBU head

The National Bank of Ukraine (NBU) should restrict the use of securities by banks in order to stimulate lending to the real sector of the economy, NBU Governor Kyrylo Shevchenko has said.

"On the one hand, it is necessary to intensify efforts to reduce problem loans in the banking system and improve the quality of the banks' loan portfolios. On the other hand, to limit the use of long-term securities that the banks buy through free liquidity instead of lending to enterprises," he said during the press briefing.

The macroeconomic stability of the financial sector remains a priority for the NBU, he said.

"Today, our efforts with you should focus on supporting the Ukrainian economy … We, as the NBU, must create together the necessary conditions for the development of lending," Shevchenko added.

He also noted that the NBU will continue to support the implementation of the main directions of the State Banks Strategy.

"The further implementation of the strategy will enhance competition, which, against the background of the NBU's monetary policy, will help reduce the cost of loans for businesses and the population," Shevchenko said.

Source: www.en.interfax.com.ua