The decision of the national Bank gradually OUGHT translate the foreign currency and Eurobonds of Ukraine from the category of risk-free assets to the category of risk may further reduce rates on foreign currency deposits to encourage depositors to hryvnia alternative, says financial analyst ICU Mykhailo Demkiv.

“During the course of dollarisation, which was spelled out in the Memorandum of understanding between the NBU and the Cabinet of Ministers, foreign currency government bonds are considered risky assets. So, for each ruble of the assets of the Bank need to have a stock capital of at least 10 cents (capital adequacy ratio = 10%)”, – he explained, why foreign bonds are a little less attractive instrument for banks.

At the same time, the expert noted that the introduction of this norm raises the question of what policy is desirable for the country. “On the one hand understand the desire to reduce the share of foreign currency in the savings and loans of the Ministry of Finance in favor of the national currency. On the other hand, the state has tens of billions of dollars of savings, and not to use this resource in a fairly expensive foreign loans in currency a little profligate,” – said demo.

Commenting on the impact of the NBU decision on calculation of capital adequacy of banks, the expert noted that today the banking system of Ukraine is one of the best indicators of capital adequacy of 18 and 43%, almost twice the minimum requirements.

“Foreign currency government bonds on banks’ balance sheets is about 100 billion, so 10 billion additional capital requirements are not a problem, because the reserves of the banking system exceeds 65 billion,” – said the representative of the ICU.

According to Demkiv, it can be a bit of a problem for individual banks with large portfolios of government securities currency in which the capital adequacy ratio is below average.

“Considering that the decree provides for a gradual transition to norms, banks have another year for changes,” – said the expert.

He said that about 40% of this portfolio worth about $1.5 billion in the state – owned Oschadbank.

As reported, according to the NBU resolution No. 132 dated 7 November, new factors of risk weighting for foreign currency securities of Ukraine will be introduced from 31 March 2020 30 June – 0,2, to December 31, – 0.5, and from 2021 – 1.