New Steps to Support the Economy
The National Bank of Ukraine (NBU) has announced amendments to the procedure for forming mandatory reserves by commercial banks.
The regulator’s goal is to enhance monetary policy efficiency under wartime conditions and stimulate external financing for Ukraine’s reconstruction.
According to the NBU, the updated requirements will allow banks to optimize liquidity management, free up more funds for lending, and strengthen cooperation with international financial organizations (IFIs).
Key Change 1: Exclusion of Seized and Sanctioned Funds
Starting November 10, 2025, the calculation of mandatory reserves will no longer include forcibly seized and sanctioned assets.
This refers to:
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Funds seized under the Law “On the Basic Principles of the Forcible Seizure in Ukraine of Objects of Property of the Russian Federation and Its Residents.”
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Assets blocked due to the application of economic and other restrictive measures in accordance with the Law “On Sanctions.”
These funds are essentially immobilized and do not influence the money supply. Excluding them helps the NBU refine its calculation model without altering the total level of required reserves in the banking sector.
“Such funds are not involved in active circulation, so their removal from reserve calculations ensures more accurate monetary policy control,” the regulator emphasized.
Key Change 2: Incentives for Long-Term External Borrowing
A second important amendment will come into effect on December 10, 2025.
From that date, banks will be allowed to exclude from reserve calculations loans obtained from non-resident legal entities for terms exceeding one year, provided that:
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The lender’s shareholders include a foreign state, and/or
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International financial organizations (IFIs) hold at least 10% of the authorized capital.
Until now, only certain categories of IFI loans were exempt from the reserve base.
The expanded rule will encourage Ukrainian banks to attract more long-term foreign capital, which can be directed toward reconstruction and development projects.
Impact on Reconstruction Financing
By easing the reserve burden, the NBU aims to make foreign and long-term funding more attractive for Ukrainian financial institutions.
This reform supports the government’s broader efforts to:
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Finance post-war recovery programs,
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Rebuild infrastructure, and
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Attract international investment into Ukraine’s economy.
The regulator expects that the measure will not significantly affect the total reserve volume, but will increase banks’ willingness to channel funds into productive sectors.
Context and Strategic Significance
Ukraine’s banking system continues to operate under extraordinary wartime conditions.
The NBU’s latest move demonstrates a shift from crisis stabilization to targeted economic stimulation, aligning monetary instruments with reconstruction priorities.
By refining its reserve policy, the National Bank strengthens its role not only as a stabilizing authority but also as a driver of sustainable post-war economic recovery.
