National Bank is preparing to the financial crisis?

31 August 2012 11:43  15919852 020362
National Bank is preparing to the financial crisis?

National Bank has simplified the loan conditions for troubled banks ..

By the Resolution No. 321 the NBU fourfold increased term of providing stabilization loans to banks for liquidity support.

Institutions are allowed to engage from the NBU stabilization funding for at least two years, while previously the initial term of the loan was limited to 90 days. The loans will be prolonged for another year only with simultaneous appoinment of the curator bank.

The maximum term of the loan will be five years, significantly more than the current 450 days in the event of a real threat to the stability of the bank.

As the newspaper writes, the NBU began to provide stabilization loans in the autumn of 2008, when banks faced massive outflow of deposits.

Funds were provided for a year term, and despite the numerous restrictions, loans were taken willingly. By 2010, the debt to the regulator reached 74 billion UAH, but by the end of the I half of 2012 fell to 60 billion.

Thus in July 2010 the NBU reduced the term of loans to 90 days against stabilization.

Bankers are surprised by the decision, saying that it looks like a regulator is preparing to a new financial crisis.

"Maybe, the NBU knows more about the global situation and what is happening in Ukraine than we do," - said one of the bankers.

Ukrajinska Pravda

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