Liquidity of the banking system remains high - NBU
Kyiv • UNN
The NBU reports high liquidity in the banking system, despite fluctuations in hryvnia deposits in July. In early August, hryvnia savings started to grow, exceeding the levels of the beginning of the year and the war.
In July, Ukrainians kept fewer hryvnia funds in bank accounts, but this did not affect the financial stability and liquidity of the banking system. In early August, hryvnia savings began to grow. UNN writes about this with reference to the National Bank statistics.
Details
In the first week of August, not only did the 1.2% decline from July resume, but there was an additional increase. As of August 9, the level of hryvnia balances of individuals exceeded the threshold:
- by 0.7% (UAH 5.1 billion) compared to the beginning of July;
- by 7% (UAH 50 billion) compared to the beginning of the year;
- by 80.9% (UAH 340.1 billion) compared to the beginning of the full-scale invasion.
Several factors contributed to the fluctuations in household deposits in banks:
- seasonal expenses related to summer vacations;
- purchasing alternative energy sources due to power outages;
- increased demand for foreign currency due to the weakening of the hryvnia exchange rate;
- increase in household investments in high-yield government bonds by UAH 5.2 billion, or 9%.
The liquidity of the banking system remains high, and total hryvnia customer accounts, including business accounts, increased by 0.3% in July. The banks' LCR liquidity ratio in all currencies consistently exceeds 342%, with the minimum required 100%, confirming the high stability of the financial system.
Despite the uncertainty of a full-scale war, households are keeping a consistently higher share of their income in bank accounts than before 2022. This is evidence of both a certain increase in the propensity to save and a high level of trust in banks
Recall
In two months, banks have received more than 7.3 thousand applications for lending to energy infrastructure restoration projects. Applications worth almost UAH 4 billion have been approved, of which UAH 607 million are already being used by businesses.