The National Bank of Ukraine is among the first public institutions to develop a new institutional strategy taking into account the Russian invasion’s impact on the Ukrainian financial system’s operating conditions.
The strategy’s implementation will be carried out according to five strategic goals, which are focused on the regulator’s main functions: ensuring price and financial stability and supporting the country reconstruction. They are broken down into 24 strategic initiatives, on which the central bank will focus in the coming years.
In the short-term, measures are aimed at ensuring stability and preventing a deterioration of the situation in the financial system and the economy in general, including the use of tools to control inflation and the hryvnia exchange rate, supporting the banking system. In the medium-term, measures are aimed at introducing transformations that will form the basis for future reconstruction and growth of the economy, for example: reducing bureaucratic barriers, enhancing transparency and competitiveness of the environment, attracting investments, etc.
In addition, NBU has expanded the list of benchmark domestic government debt securities that banks have been allowed to use to partially meet the reserve requirements as well as updated standards and technologies in capital markets.
In order to align the procedure for settlement of DVP securities transactions and NBU certificates of deposit, the NBU has amended regulations. Settlement of DVP transactions with domestic government debt securities in SEP-4.0 (the next generation of the state system of electronic interbank settlements) is based on the latest ISO20022 standard. And the central bank has introduced separate rules aimed at improving the compliance of the NBU’s Depository with the Principles for Financial Market Infrastructures (PFMI).