The head of the National Bank of Ukraine, Kirill Shevchenko, submitted his resignation to the President of Ukraine on Tuesday, the NBU said in a statement.
“For reasons related to health, which I cannot ignore in the future, I made a difficult decision for myself. I am leaving the post of head of the NBU. I have asked the President of Ukraine to accept my resignation,” Shevchenko is quoted as saying.
He thanked the head of state Volodymyr Zelensky for the trust shown and joint work for the benefit of the state in peacetime and wartime, as well as the NBU team and colleagues from all over the financial market.
“From the first days at the NBU, I was, first of all, an anti-crisis manager and fulfilled my mission: I ensured the smooth operation of the financial system in the extremely difficult time of a full-scale war. The war became another difficult test for our team and me personally – and we passed it with dignity,” – said the head of the NBU.
According to him, the National Bank managed to ensure the smooth operation of the financial system, prevent panic in the foreign exchange market, stop a large-scale outflow of capital in order to protect reserves, keep inflation at an adequate level and “support the state budget, understanding the difficulties in attracting funds during the war.”
“Today, the NBU is indeed stronger than ever in its ability to meet challenges and overcome crises, it is worthy of being tested by war. And it retains its ability to be the basis of post-war economic recovery and direct the entire financial sector to this,” Shevchenko stressed.
He said he was handing over the banking system to a strong, capitalized, resilient banking system for those who would come after him.
“Until the relevant decisions of the Verkhovna Rada of Ukraine on the dismissal and appointment of the head of the National Bank are made, the Board of the National Bank will continue to perform its functions and manage the activities of the National Bank in its current composition,” the message says.
As reported, the Rada appointed Shevchenko head of the NBU on July 16, 2020, before that he was the head of the board of the state-owned Ukrgasbank.
Earlier, on July 1, 2020, the head of the NBU, Yakov Smoliy, resigned due to political pressure.
On October 3, the National Bank of Ukraine (NBU) will conduct another exchange of non-cash currency for cash to reinforce banks’ cash desks, the regulator’s press service told Interfax-Ukraine on Friday.
“On Monday, October 3, the NBU will once again carry out operations to exchange cash for non-cash currency. $100 million and EUR100 million will be offered for the exchange of a systemically important bank. The results of the operations will be made public on the day they are carried out,” the report says.
The press service noted that the previous activities of the bank had already had a positive effect, in particular, the number of banks participating in the relevant operations decreased, and the balances of foreign currency in cash in the system increased.
As reported, on September 7, the National Bank exchanged $100 million in cash for non-cash to banks, on September 12 – $100 million and EUR72 million, on September 19 and 27 – $100 million and EUR20 million each.
The regulator clarified that the operations of exchanging non-cash currency for cash will be carried out as long as it is necessary. The results of the relevant transactions will be published on the day of the transaction on Facebook and Telegram.
The NBU noted that such operations will not affect international reserves.
On September 29, 2022, the National Bank of Ukraine applied to PJSC Ukrainian Industrial Insurance Company and ALC Nadiya Insurance Company (both Kyiv) measures in the form of license cancellation, according to the website of the regulator.
The reason for this decision was the repeated violation of license conditions and once again failure to provide information at the request of the regulator. Namely, observance of mandatory monetary standards, overdue obligations under concluded insurance contracts, cases of violation of the deadlines for the settlement of declared events that have signs of insurance (the composition of the reserve for claimed but not paid losses).
“Consequently, for a long time after the start of the Russian aggression, insurers did not take measures to establish operational activities and accounting. This makes it impossible to carry out full-fledged insurance activities,” the report says.
Decisions to cancel licenses come into force on September 30, 2022.
As reported on August 12, 2022, a measure of influence was applied to these insurers in the form of a temporary suspension of licenses.
Insurers, to which the National Bank has applied enforcement measures, operate in the non-life segment.
PJSC “Ukrainian Industrial Insurance Company” does not provide reports to the National Bank, starting from the reporting for 2021.
ALC IC “Nadiya” does not provide reporting, starting with the reporting for the 1st quarter of 2022.
Based on the results of 2021, IC Nadiya received UAH 3 million in insurance premiums and made UAH 3.1 million in insurance payments. At the same time, the company did not enter into insurance contracts with individuals. The company’s market share based on the results of 2021 is 0.006%. The insurer informed the National Bank of the temporary cessation of insurance activities after the start of the military aggression of the Russian Federation.
Net sales of dollars by the National Bank of Ukraine rose to $737.8 million last week compared to $510.7 million a week earlier and $475.0 million two weeks earlier.
According to the information of the National Bank on its website, from September 19 to 23, it purchased $7.1 million, which corresponds to the usual purchase volumes during the war, while it sold $744.9 million compared to $528.2 million a week earlier.
This week, on the cash market, the hryvnia again weakened by about 70 kopecks, and its rate came close to the level of UAH 43/$1, while the official rate of UAH 36.57/$1 was fixed since July 21, but by the end of the week it strengthened to UAH 42.7/$1. $1.
Since the beginning of September, the volume of interventions of the National Bank in the market has already exceeded $1.8 billion compared to $1.33 billion in August and $1.2 billion in July, but still remains much less than in June ($3.96 billion) and May ( $3.4 billion).
Finance Minister Sergei Marchenko said that in August the volume of foreign aid to Ukraine amounted to a record $4.6 billion since the beginning of the war, compared with $1.7 billion in July and $4.4 billion in June.
In general, from the beginning of the year to September 23 inclusive, the NBU purchased $3 billion 121.3 million and EUR111.0 million on the market, and sold $18 billion 607.7 million and EUR1 billion 789.1 million.
Including since the beginning of the war, the purchase of foreign currency has reached $2 billion 464.4 million and EUR111.0 million, and the sale – $15 billion 837.5 million and EUR1 billion 789.1 million.
The international reserves of Ukraine as of September 1, 2022, according to the NBU, amounted to $25.436 billion (in equivalent), which is 13.6% or $2.679 billion more than at the beginning of August. In July, the fall in reserves amounted to 1.6%, or $371.5 million, in June – 9.3%, or $2 billion 343.8 million.
The National Bank of Ukraine is discussing the issue of a possible entry into the secondary market with its portfolio of domestic government bonds, as this may be one of the elements of strengthening monetary transmission and sterilizing excess hryvnia liquidity, NBU deputy head Serhiy Nikolaychuk said.
“In addition, this step will reduce the negative impact of the issue. We are working on technical issues and consulting with our stakeholders,” he said in an interview with Delo.
Commenting on the opinion that the National Bank’s entry into the market with its bonds may reduce the effectiveness of the primary auctions of the Ministry of Finance, Nikolaychuk noted that the reason for the low results of these auctions lies in the low rates offered to buyers, which was confirmed by insignificant volumes of attraction even before the resumption of the secondary government bonds market in early August.
“In order for the auctions of the Ministry of Finance to be successful, it should move towards the government bonds yield that the market wants to see. The NBU, in the event of an exit with its portfolio of government bonds, will focus primarily on the market yield of government bonds. Otherwise, such a step would make no sense” – said the deputy head of the NBU.
According to him, now for the most liquid hryvnia government bonds with a circulation period of 6-12 months, rates in the secondary market have stabilized at the level of 20-25% per annum, while the Ministry of Finance offers 12-14%.
Speaking about the situation in the foreign exchange market, Nikolaychuk pointed out that today the balance of supply and demand in the foreign exchange market of the National Bank “is more or less satisfactory.”
“And according to our estimates, it should not worsen during September and October. We also expect that, thanks to international assistance, we will be able to keep gold and foreign exchange reserves at a sufficient level,” the deputy head of the NBU said.
Currently, the total value of government bonds in the portfolio of the National Bank in terms of the principal debt is UAH 619.5 billion, while the total government bonds in circulation are worth UAH 1 trillion 280.9 billion, and the portfolio of banks is UAH 497.2 billion, non-residents – 66.9 billion UAH, legal entities – UAH 65.8 billion and individuals – UAH 30.8 billion.
The leader in increasing the volume of public deposits in June was the state-owned PrivatBank, which increased them by UAH 21.08 billion, or 6.6%, over the month.
As reported on the website of the National Bank of Ukraine (NBU), another representative of the state, Oshchadbank, follows: the absolute inflow of public funds to it amounted to UAH 5.74 billion, and the relative inflow was 4.2%.
At the same time, if at Privat the number of depositors increased by 68.03 thousand, including currency depositors – by 35.98 thousand, then at Oshchad the number of depositors decreased by 30.5 thousand. with an increase in currency by 2.8 thousand
The largest increase in the number of depositors in June was shown by the Ukrainian Universal Bank (monobank) – 114.91 thousand, including currency depositors – 48.15 thousand. With such an increase in depositors, the increase in deposits amounted to 2.6%, or UAH 1.16 billion, which ensured the bank the fourth position.
Banks with foreign capital – Ukrsibbank and Raiffeisenbank, in which 40% and 30% respectively belong to the European Bank for Reconstruction and Development (EBRD), took third and fifth place. Deposits in them increased in June by UAH 1.59 billion, or 3.8%, and by UAH 1.09 billion, or 2%, respectively, and the number of depositors increased by 20.6 thousand. and 10.1 thousand
On the other side of the list is Alfa-Bank, deposits in which in June decreased by UAH 943.5 million, or 2.2%, including currency deposits – by UAH 699.5 million, or 3.4%. At the same time, the number of depositors increased by 13,140, which is probably due to the bank’s card product and a good exchange rate for it.
In addition, UAH 386.7 million, or 1% of the funds of natural persons, was left in June by FUIB. He also had the largest part of the outflow – UAH 224.7 million – on currency deposits.
The outflow of funds from Accordbank amounted to UAH 124.3 million, or 6.8%, from Vostok Bank – UAH 103.7 million, or 2%.
Rounding out the bottom five is A-Bank, whose deposit volume in June decreased by UAH 74.7 million, or by 0.8%. At the same time, the increase in depositors was 59.08 thousand. – it came third, second only to monobank and PrivatBank, and far ahead of the trailing TASkombank with 22.68 thousand. new depositors.
In general, according to the data of the NBU, in June the funds of individuals in banks increased by UAH 30.36 billion, or by 3.5% – almost all due to hryvnia deposits, since currency deposits increased by only UAH 0.17 billion, or by 0 ,1%.
Data on the volume of deposits and the number of individual depositors in Ukrainian banks as of 07/1/22 and their dynamics in June (Ukrainian)
