The National Bank has approved BANK ALLIANCE for participation in the best foreign exchange interventions in October-December 2019. This is a confirmation of the reliability and sustainable development of the bank, imposes some responsibility and certainly benefits our customers. Only 20 banks have the opportunity to participate in NBU currency interventions, which is a significant advantage for clients in the event of a currency shortage.
With twenty banks to participate in foreign exchange interventions, according to the updated methodology, the state regulator was determined at the beginning of October 2019. This was reported by the press service of the NBU.
As of September 1, 2019, there are 76 banks operating in Ukraine. According to the selection criteria, only 20 banks can participate in foreign exchange interventions, in the form of RFQs, which have the best rating among the participants of the interbank market in the previous quarter. Approval to this list also means that BANK ALLIANCE meets the NBU's increased security requirements.
The rating of banks is calculated on the basis of three criteria. The first is the volume of transactions for buying and selling currency between the bank and other market entities, including the National Bank - the share in the overall rating is 50%. The second is the volume of bank operations with customers for the purchase and sale of non-cash foreign currency, the share is 30% and the last - the volume of bank assets. The specific weight of this criterion is 20%.
We would like to remind that interventions in the form of the request for the best exchange rate were introduced in 2017, in accordance with the National Bank's Currency Intervention Strategy for 2016-2020. Initially, they were performed only through RFQ functionality, and starting in April 2018, the NBU began to use Matching functionality in addition. The main advantages of the latter are unlimited number of participants, expeditious conclusion of transactions and anonymous quotes.
