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RESOLUTION OF BOARD OF THE NATIONAL BANK OF UKRAINE

of July 19, 2024 No. 88

About approval of the Regulations on the organization of process of assessment of sufficiency of internal liquidity in banks of Ukraine and banking groups

According to Articles 7, 15, 55, 56 Laws of Ukraine "About the National Bank of Ukraine", Articles 44, 66, 67 Laws of Ukraine "About banks and banking activity", the Law of Ukraine of June 30, 2021 No. 1587-IX "About modification of some legal acts of Ukraine concerning enhancement of questions of the organization of corporate management in banks and other questions of functioning of bank system", Directives of the European Parliament and Council 2013/36/EU of June 26, 2013 about access to activities of credit institutes and prudential supervision of credit institutes and investment firms about modification of the Directive 2002/87/EU and about cancellation of directives 2006/48/EU and 2006/49/EU, for the purpose of ensuring maintenance by banks and banking groups on permanent basis of the liquidity sufficient for covering of all substantial risks connected with liquidity and observance of the requirements established by the National Bank of Ukraine concerning sufficiency of liquidity both in regular, and in stressful situations, the Board of the National Bank of Ukraine decides:

1. Approve Regulations on the organization of process of assessment of sufficiency of internal liquidity in banks of Ukraine and banking groups (further - the Provision) which are applied.

2. To banks of Ukraine and responsible persons of banking groups:

1) to develop, approve and enter the intra bank and intra group bank documents regulating the organization and functioning of process of assessment of sufficiency of internal liquidity (further - process of ILAAP), - till December 31, 2024;

2) to provide submission to the National Bank of Ukraine of the report on process of ILAAP by results of assessment of process of ILAAP as of January 01, 2025 according to requirements of the Provision.

3. To department of methodology of regulation of activities of banks (Oksana Prisyazhenko) after official publication to inform banks of Ukraine information on adoption of this resolution.

4. The resolution becomes effective since August 5, 2024.

Approved by the Resolution of Board of the National Bank of Ukraine of July 19, 2024 No. 88

Regulations on the organization of process of assessment of sufficiency of internal liquidity in banks of Ukraine and banking groups

I. General provisions

1. Basic provisions and terms

1. This Provision is developed according to requirements of the laws of Ukraine "About the National Bank of Ukraine", "About banks and banking activity" and is aimed at providing maintenance by banks and banking groups on permanent basis of amount of internal liquidity in the amount of, sufficient for ensuring their continuous stable activities, both in regular, and in stressful situations, coverings of all substantial risks connected with liquidity inherent in bank / to banking group.

2. Terms and reducings in this Provision are used in the following value:

1) the basic scenario combination of the expected changes in internal and external factors (including macroeconomic changes) which are applied in case of creation of the business plan and budget of banks/members of banking group;

2) intra bank/intra group bank documents - provisions, instructions, techniques, rules, orders, decisions, orders or developed documents in other form which among other things include the description of procedures / processes, responsibility of workers for accomplishment of functional obligations by them, distribution of obligations, order of interaction of divisions and workers of banks/members of banking group and other questions on the organization and functioning of process of assessment of sufficiency of internal liquidity in banks and banking groups taking into account requirements of this provision;

3) the declaration of tendency to risks (in English of Risk Appetite Statement) - the declaration of tendency to risks developed according to requirements of the Regulations on the organization of risk management system in banks of Ukraine and banking groups approved by the resolution of Board of the National Bank of Ukraine of June 11, 2018 No. 64 (with changes) (dalee-Polozheniye No. 64);

4) sufficiency of internal liquidity on economic prospect - the liquidity amount determined by bank sufficient for covering of all substantial risks connected with liquidity inherent in bank;

5) sufficiency of internal liquidity on normative prospect amount of liquidity, determined by bank taking into account all substantial risks connected with liquidity inherent in bank, sufficient for observance established by the National Bank of Ukraine (further - National Bank) requirements concerning sufficiency of liquidity, including maintenance of the managerial inventory of internal liquidity determined by bank;

6) available internal liquidity on economic prospect amount of liquidity, determined by bank as available to covering of all substantial risks connected with liquidity, expected cash outflows and ensuring sufficient financing;

7) available internal liquidity on normative prospect amount of liquidity, determined by bank as available to observance of the requirements for sufficiency of liquidity established by National Bank, including maintenance of the managerial inventory of internal liquidity determined by bank;

8) The instruction No. 368 - 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 at No. 841/6032 (with changes);

9) method of calculation of coverage ratio liquidity (LCR) - the requirements to calculation of coverage ratio liquidity (LCR) established for banks / banking groups the Instruction No. 368, the Regulations on procedure for regulation of activities of banking groups approved by the resolution of Board of the National Bank of Ukraine of June 20, 2012 No. 254, registered in the Ministry of Justice of Ukraine on July 12, 2012 at No. 1178/21490 (with changes) (further - No. Provision 254);

10) method of calculation of coefficient of net stable financing (NSFR) - the requirements to calculation of coefficient of net stable financing (NSFR) established for banks / banking groups the Instruction No. 368, the Provision No. 254;

11) the minimum values of standard rates of liquidity - the normative values of standard rates of liquidity established by instruction No. 368/provision No. 254;

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