The improvement of macroeconomic situation encouraged further increase of money demand and continuation of other positive tendencies in the monetary market, which resulted in gradual increase of money supply, the growth of banks` reserves and credit deposits against the background of interest rates decrease, according to the information of the National Bank of Ukraine.
In August 2006 the money supply has increased by 2.3 % (since the year begin - by 16.8)%) and reached 226.6 UAH billion, in return for decrease of the monetary base by 0.4% (since the year begin - by 1.1%) up to 81.9 UAH billion.
The August increase of money supply was caused by intensification of money multiplication: money multiplier has increased in August from 2.70 to 2.77.
Under performing August interventions on foreign exchange purchase in the interbank foreign exchange market by the National Bank of Ukraine, decrease of the monetary base was mostly caused by the increase by 20.8% of the government deposits in the national currency on accounts with the National Bank of Ukraine.
To maintain the banking system liquidity, the National Bank of Ukraine has effected for the period: January - Aufust the refinancing of banks to the general amount of 7024.2 UAH million, including 5013.7 UAH million of the overnight credits, 1254.9 UAH million of the direct repo with foreign exchange, 740.8 UAH million of credits via tender and 14.85 UAH million of credits on the security of interests on bank deposit.
In August the general volume of refinancing transactions of banks amounted to 517.3 UAH million, including 351.5 of the overnight credits, 150.9 UAH million of credits via tender, 14.85 UAH million of credits on the security of interests on bank deposit. Predominant part of tender credits (67% of the sum total) was granted in August on the security of interests on credits granted before, 33% - on the security of government T-bills.
Average-weighed rate on all refinancing instruments in January - August amounted to 11.88 %, including 12.34 % on the overnight credits, 10.68% on credits via tender, 10.8% on the direct repo with foreign exchange, 8.5% on refinancing credits on the security of interests on bank deposit.
The average weighted rate on all refinancing instruments in August amounted to 9.88%, including 9.96% on the overnight credits, 9.83 % on credits via tender, 8.5 % on refinancing credits on the security of interests on bank deposit.
Transactions on fund mobilization in August has amounted to 965 UAH million (950 UAH million - obtaining funds on deposit account, 15 UAH million - obtaining funds on deposit account, whose interests are given on the security of refinancing credits. Since the year begin the volume of mobilization transactions equaled 4595 UAH million.
Cash flow outside banks increased in August by 1.7% up to 67.4 UAH billion (since the year begin - by 11.9%), and its specific weight in money supply composition has decreased from 30% to 29.7%.
In August there was continued tendency of increasing banks reserves: total volume of deposits increased by 2.4% (since the year begin - by 18.9%) up to 158 UAH billion, at this, deposits in national currency increased by slower rates (by 0.3%), than deposits in foreign exchange (by 5.5%). Growth rates for deposits of households (2.8%) surpassed growth rates for deposits of legal entities (1.8%).
The volume of credit deposits increased in August by 4.9% (since the year begin - by 36.9%) up to 196.4 UAH billion. Cumulative (since the year begin) increase of credit deposits was the largest for the same period since 1996. Banks credit deposits to natural persons in August continued to grow by higher rates (by 8.6%) than credits to legal entities (by 3.3%).
The average weighted rate on credits in national currency decreased in August from 15.0% to 14.6%. At the same time the rate in foreign exchange increased from 11.0% to 11.2% . Integral rate on credits decreased from 13.4% to 13.2%.
Average weighted rate on deposits in national currency increased in August from 7.0% to 7.3%, and in foreign exchange it decreased - from 5.5% to 5.3%. Integral rate on deposits increased from 6.3% to 6.4%.