Table 2 Bank’s liquidity indicators 

Indicator 

Economic content 

Standard 

Instant liquidity ratio 

Shows the possibility of a bank to repay liabilities for 

deposits with cash from cash involved and correspondent 

accounts 

≥ 20% 

Overall liquidity ratio 

Characterizes the maximum ability of the bank to repay 

liabilities with all assets 

≥100% 

The ratio of highly liquid 

assets to working assets 

Characterizes the share of highly liquid assets in working 

assets 

≥20% 

Liability ratio 

Characterizes the provision of liabilities to the bank's 

profitable assets 

– 

Liquidity ratio of loans issued 

and deposits attracted to 

determine unbalanced liquidity 

Liquidity ratio of loans issued and deposits attracted to 

determine unbalanced liquidity 

≥70% 

The ratio of total liquidity of 

liabilities 

Shows the bank's ability to repay its liabilities with 

highly liquid assets and through the sale of property 

– 

Quick liquidity ratio (N4) 

Set up to control the ability of the bank to ensure timely 

execution of its monetary obligations at the expense of 

highly liquid assets 

≥20% 

Current liquidity ratio (N5) 

Set up to determine the balance of terms and amounts of 

liquid assets and liabilities of the bank 

≥40% 

Short-term liquidity ratio (N6) 

Set up to monitor the ability of the bank to fulfill its 

short-term liabilities at the expense of liquid assets 

≥60% 

Source: developed by the authors on the basis of [11] 

 

Table 3. High-quality liquid assets 

HQLA, national currency 

HQLA, foreign currency 

banknotes and coins 

banknotes and coins 

NBU deposit certificates 

Government bonds in foreign currency (maturity <30 days) 

Government bonds in 

national currency 

(maturity <30 days) 

Debt securities of international development banks 

Debt securities of 

international development 

banks 

Debt securities of the G-7 government authorities with ratings of 

leading world rating agencies not lower than “AA-A” / “Aa3” 

Funds on correspondent 

accounts with the NBU 

Funds on correspondent accounts in other banks with a rating not 

lower than the investment grade (positive balance of NOSTRO - 

LORO accounts during the transition period, with a gradual annual 

decrease of the maximum share in the HQLA by 20 pp until the 

complete exclusion on 01.01.2025) 

Source: developed by the authors on the basis of[10; 12] 

 
Effective management of the bank implies the availability of complete, reliable 

and substantiated information on the transactions carried out, their nature and scope, 
the provision of financial resources and results of the activities of different business 
areas and the bank as a whole. Management reports often ignore the risk of liquidity or 
are imperfect due to incomplete information and its retrospective nature. Management 
reports in accordance with the Regulations of the National Bank of Ukraine regarding 

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