Citizens prefer deposits in UAH, and not in the currency

situation on the monetary market in January 2010 was characterized by a continuation of positive trends to an increase of population in the banking system. This occurred against a background of reducing the cost of borrowed funds, which allowed banks to reduce the cost and credit resources.

However, the dynamics of individual indicators of the monetary market (in particular, the volume of corporate deposits and loan portfolio) influenced the decision to start liquidation Ukrprombank, the volume of loans and deposits which have ceased to be considered in the overall performance of the banking system.

according to a report of the National Bank of Ukraine (NBU).

While that total deposits in January 2010 decreased by 0,9% (up to 324,7 billion UAH.), retail deposits increased by 0,3%. I grew up the v1000olume of investment of the population came from increased deposits in UAH (0,9%), while individuals” funds in foreign currency declined slightly (by 0,1%).

of legal entities in January decreased by 3,2%, in particular due to the influence of technical factors related to the liquidation of LLC Ukrprombank.

Also in January there was a decrease of cash outside banks to 2,5% - to 153.1 UAH billion. that is a traditional phenomenon for the first month of the year. Share of cash in the structure of money supply in January fell to 31.9% compared with 32,2% in December 2009.

Reducing the volume of deposits and cash outside banks accordingly affected the dynamics of money supply, the volume of which in January fell by 1,5% - to 480.2 UAH billion. And the amount of the monetary base decreased by 2,8% - to 189.4 UAH billion.

flow of funds from cash to cashless boosted liquidity in the banking system. To avoid the formation of monetary stability of the currency risk The National Bank of Ukraine has been actively carried out the operation to raise funds of banks, total volume in January amounted to 16,6 billion UAH., While the volume of refinancing operations of the banks - 1,4 billion UAH.

average interest rate on mobilization operations in January amounted to 7,9%, on refinancing operations - 13,1%.

operations NBU to regulate liquidity helped to ensure balance on the monetary market and avoid excessive growth of bank liquidity - the amount of banks” correspondent accounts in January increased by 0,6% - to 17,5 billion UAH.

total required reserves generated by banks in January, amounted to 12,2 billion UAH., including 5,7 billion UAH. was transferred to a separate bank account at National Bank of Ukraine.

dynamics of the budget in January at the state of liquidity of banks has not significantly affected. The level of government in national currency on accounts of National Bank of Ukraine in January increased by 72,7% (in nominal amount of only 0,8 billion UAH.) - Up to 1,9 billion UAH.

volume of operations of the National Bank of Ukraine on redemption of government bonds from banks of Ukraine (nominal value) in January amounted to 6,32 billion UAH.

determining factor in reducing the total balance of credit inflow in January to 2,0% - to 703.5 UAH billion. was the beginning of the elimination LLC Ukrprombank, credit investments which have ceased to be considered in total. Reducing balance of credit inflow occurred in both national (2,5%) and foreign (1,5%) currencies.

certain stabilization of the situation on the monetary market and the gradual reduction of inflation and devaluation expectations caused a decrease in the value of money in national currency - both loans and deposits. Thus, the average rate in domestic currency loans decreased from 19.6% in December 2009 to 17,4% in January 2010, the weighted average cost of deposits during this period decreased from 14,0% to 12,4%. The average value of loans in foreign currency increased from 10,2% in December 2009 to 10,3% in January 2010, while on deposits has decreased from 9,5% to 9,2%.

the interbank loan market average rate for transactions fell from 7.0% per annum in December 2009 (including loans overnight 3,3%) to 6,2% (for loans overnight 2,7%) in January 2010.

the State Budget of Ukraine on the results of placement on the primary auctions of government bonds of domestic loans during January 2010 received funds totaling $ 1 166.82 mln. Weighted average yield on Government Bonds in the auctions for the initial public offering was 22.32% per annum.

redemption and payment of income to Government Bonds were carried out promptly and in full, which in January 2010 amounted to 389.31 mln., including the basic duty 141.45 mln., payment of income 247.86 mln .

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