The National Bank of Ukraine (NBU) approved changes to how banks’ required reserves are calculated under martial law to improve money market regulation and incentivise inflows of external financing, including longer-term funding intended to support reconstruction. From 10 November 2025, forcibly seized funds and funds frozen under sanctions will no longer be included in the reserve requirement calculation, reflecting that these balances are immobilised and do not affect monetary processes; the NBU expects no significant impact on total required reserves. From 10 December 2025, the calculation will also exclude bank loans with maturities longer than one year obtained from non-resident legal persons that have a foreign state as a shareholder and/or have at least 10% of their authorised capital funded by international financial institutions, extending the current approach that does not capture all IFI-originated borrowing. The changes were adopted through NBU Board Resolution No. 125 and NBU Board Decision No. 373, alongside related amendments to the NBU’s Resolution No. 23 that take effect on 10 December 2025.
National Bank of Ukraine 2025-10-13
National Bank of Ukraine revises reserve requirement calculations to exclude seized and sanctioned funds and some long-term non-resident loans
The National Bank of Ukraine (NBU) has revised banks' required reserves under martial law to enhance money market regulation and attract external financing. From 10 November 2025, seized and sanctioned funds will be excluded from reserve calculations, and from 10 December 2025, loans over one year from non-resident legal entities with foreign state or international financial institution backing will also be excluded. These changes, formalized in NBU Board Resolution No. 125 and Decision No. 373, aim to support reconstruction efforts.