The National Bank of Ukraine has amended its reserve requirement rules to unify the treatment of interbank repo transactions. From 10 August 2026, funds raised by a bank from resident banks through repo transactions will not be included in the reserve base, regardless of whether the deal is concluded directly between banks or through a central counterparty. The exclusion will apply to funds raised through repo transactions on organized capital markets with the participation of a central counterparty, provided the central counterparty obtained those funds from another resident bank and this is confirmed by the relevant repo agreements. By contrast, funds raised through repo transactions with a central counterparty from an entity that is not a resident bank will remain subject to reserve requirements. The central bank said the change is intended to encourage greater use of central counterparties in the interbank repo market, support money market activity and bring Ukrainian rules closer to the EU acquis.
National Bank of Ukraine2026-06-12
National Bank of Ukraine excludes certain central counterparty repo funding from reserve requirements from 10 August 2026
The National Bank of Ukraine has changed reserve requirement rules so that, from 10 August 2026, interbank repo funding from resident banks is excluded from the reserve base whether it is arranged directly or through a central counterparty. The exemption for central counterparty trades applies only where the underlying funds come from another resident bank, while funding sourced from non-resident-bank entities remains subject to reserve requirements.