ICU Research: Funds reallocated to CDs

January 16, 2017 - Cbonds


After last Thursday, total outstanding CDs rose significantly as banks increased the CDs portfolio to UAH59.96bn, with ON CDs outstanding equaling longer-term CDs. Total banking sector liquidity fell UAH0.32bn to UAH107.78bn, following an anticipated reallocation of funds from banks' accounts to CDs. Banks' correspondent accounts with the NBU fell UAH4.10bn while total CDs outstanding rose UAH2.79bn. Notably, non-monetary transactions had a negative impact on liquidity of UAH1.72bn, but a without similar decline in liquidity.

Investment implications: Considering the impact of different factors on liquidity, the decline was inconsequential as banks increased their portfolio of CDs, signaling that liquidity should stabilize more this week prior to month-end tax payments.
Cbonds page: ICU
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ICU is an asset management and investmnet banking company.

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