RESOLUTION OF BOARD OF THE NATIONAL BANK OF UKRAINE

of February 15, 2018 No. 13

About introduction of coverage ratio of liquidity (LCR)

According to Articles 7, of 15, of 55, 56 and 58 Laws of Ukraine "About the National Bank of Ukraine", to articles 66 and 67 of the Law of Ukraine "About banks and banking activity", for the purpose of maintenance of the level of liquidity by banks necessary for ensuring stable activities and timely accomplishment of obligations to investors and other creditors, the Board of the National Bank of Ukraine DECIDES:

1. Bring in the Instruction about procedure for regulation of activities of banks in Ukraine approved by the resolution of Board of the National Bank of Ukraine of August 28, 2001 No. 368, registered in the Ministry of Justice of Ukraine on September 26, 2001 for No. 841/6032 (with changes), such changes:

The Section I after the paragraph of the eleventh to add 1) with the new paragraph the twelfth the following content:

"coverage ratio of liquidity (LCR);".

With respect thereto the twelfth - the twenty sixth to consider paragraphs respectively paragraphs the thirteenth - the twenty seventh;

2) in the Section V:

in Item 1.2 of Chapter 1 of the word and figures "and short-term liquidity (6)" shall be replaced with words N also in figures ", short-term liquidity (N 6) and coverage ratio of liquidity (LCR)";

add the Section with the new head of the following content:

"5. Coverage ratio of liquidity (LCR)

1. Coverage ratio of liquidity (LCR) - the standard rate of liquidity which establishes minimum necessary level of liquidity for covering of the net expected cash outflow within 30 calendar days taking into account stress scenario (further - the net expected cash outflow).

2. The bank calculates coverage ratio of liquidity (LCR) every day as ratio of high-quality quick assets to the net expected cash outflow.

The bank carries to high-quality quick assets assets which meet the characteristics and the requirements established by National Bank.

The bank calculates the net expected cash outflow as difference of the cumulative expected outflows and the cumulative expected cash receipts. The cumulative expected receipts are accepted in the amount of no more than 75 percent of the cumulative expected outflows.

The bank determines the expected outflows and the expected cash receipts using coefficients of the expected outflows and the expected receipts established by National Bank on basis stress scenario.

3. The bank perfroms calculation of coverage ratio of liquidity (LCR) according to the Method of calculation of coverage ratio of liquidity (LCR) established by National Bank.".

2. To banks of Ukraine:

1) to perfrom calculation of coverage ratio of liquidity (LCR) in the test mode on monthly basis on the following reporting dates: On June 01, on July 01, on August 01, on September 01, on October 01 and on November 01, 2018 and no later than the seventh working day after the specified reporting dates to give it to the National Bank of Ukraine in the form established by it;

2) no later than the seventh working day after July 01, on August 01, on September 01, on October 01, on November 01 and on December 01, 2018 to submit to the National Bank of Ukraine data on the actual outflows and cash receipts for June, July, August, September, October and November, 2018 according to the form established by the National Bank of Ukraine;

3) since reporting date as of December 01, 2018 to adhere to normative value of the coverage ratio of liquidity (LCR) established by the National Bank of Ukraine;

4) for the purpose of maintenance of sufficient level of liquidity to provide functioning of effective risk management system of liquidity and use of instruments of monitoring of liquidity on permanent basis.

3. To department of methodology (Ivanenko N. V.) after official publication to inform banks 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 Rozhkova K. V.

5. The resolution becomes effective since March 1, 2018.

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