National Bank of Ukraine Takes Steps for Operations During Russian Invasion
Posted on 02/26/2022
National Bank of Ukraine or NBU is the central bank of Ukraine – a government body responsible for unified state policy in the field of country’s monetary circulation, including strengthening of the national currency unit, hryvnia. Due to the Russian invasion, Ukraine’s central bank banned the issuance of electronic money and the replenishment of electronic wallets. Martial law is being upheld in the Ukraine.
On February 25, 2022, the NBU wrote a statement called, “NBU Takes Further Steps to Sustain Operation of the Banking System Under Martial Law.”
The statement reads, “The NBU’s priority is to maintain stability of the banking system through mitigating the negative impact of the military aggression by the Russian Federation against Ukraine. To that end, the NBU:
has approved Rules for Banks to Operate under Martial Law Introduced in Ukraine, in particular concerning specifics of meeting the requirements of Regulation On Assessment by Ukrainian Banks of their Credit Exposures approved by NBU Board Resolution No. 351 dated 30 June 2016 (as amended) and Regulation On Organization of Problem Assets Management Process in Ukrainian Banks approved by NBU Board Resolution No. 97 dated 18 July 2019 (as amended)
has set specifics of the NBU’s annual resilience assesment of banks in 2022 under the Regulation On Assessing Resilience of Banks and Banking System of Ukraine, approved by NBU Board Resolution No. 141 dated 22 December 2017 (as amended). This time, only stages 1 and 2 will be performed
has taken a decision not to apply corrective actions to banks for the failure to comply with economic ratios, open FX position limits, and deadlines for submitting statistical reports and to the banking groups for failure to comply with the requirements for regulatory capital adequacy, liquidity ratios, and credit risk, if such violations occurred starting 24 February 2022 due to adverse effect of the military aggression by the Russian Federation against Ukraine.
Relevant measures are approved by NBU Board Resolution No.23 On Some Issues of Operation of Ukrainian Banks and Banking Groups dated 25 February 2022, which takes force on 25 February and will be effective until it’s abolition.”
The bank also added, “In the past 24 hours, an equivalent of nearly UAH 300 million has been wired into the special account that the NBU opened to support the Armed Forces of Ukraine. Both people and businesses in Ukraine, as well as the international community (specifically the EU countries, the United States, Canada, the United Kingdom, and more), have remitted funds into this account.”