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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