The regulator will establish a fee for the cash and raise the rates for their issuing banks. The national Bank seriously ponders order to set the rate on cash deposits from Ukrainian banks. And not the symbolic, but directly in amount of 0,35% of the amount of the received funds. About it UBR.ua it became known from market participants familiar with the preparation of monetary reform.Currently, the territorial division of the NBU accept cash from financiers for free and give them money (support office) – below 0.2%. Discount make only authorized financial institutions. Those entrusted to ensure cash flow in a number of regions in the framework of centralization of the functions of the NBU was deprived of its own terupravlenii.
If the national Bank will be decided on an unpopular measure, what has all the prerequisites, the regulator will no longer accept from banks its surplus cash free. And for every accepted 100 hryvnia will take them 35 cents — reports ubr.ua
The second part of the reforms already implemented monetary authority. Its essence boils down to the establishment of differentiated tariffs for backup banking banks cash depending on the denominations of the bills:
Coins-10 cents – 20 UAH for 1000 pieces.Coins 50 cents – 35 UAH for 1000 pieces.Banknotes of UAH 1-100 – 0,2%.Banknotes of 200 and 500 UAH – 0,25%.Bills 1000 UAH – 0.3 percent.For comparison, the average cash purchase of U.S. dollars with delivery to Ukraine from Europe, transfer of cashless money to the correspondent Bank costs the Ukrainian financial institutions of approximately 0.1%. That is, the delivery of the money with Troyeshchyna in Kyiv, where the vault of the NBU, the officials assessed three times more than the delivery of dollars in cash from Germany.
What does it do
The national Bank increase in tariffs is explained by the struggle with cash. The regulator a few years ago adopted a strategy Cashless, and continues to follow it. In this context, the measures in fact can be very effective. At first glance, a couple tenths of a percent in Commission of the NBU – not such a significant change. However, across a large trading network it may significantly increase the company’s cost of service cash flow.
According to the national Bank, in October the volume of cash hryvnia in circulation was estimated at 391 billion. Since the beginning of year this indicator decreased by UAH 9.1 billion, the figure remains too high and does not correspond to the desire of the regulator to wean Ukrainians to carry the money bags.
The increase of commissions for cash and, especially, the rate of reception of money will affect the cost of collection for the business. However, this is not the only reason. As in other areas of business, the cost of collection is increasing: employees are demanding wage growth, car maintenance is expensive. Because, say market participants, at the beginning of next year, the cost of collection will increase by about a third. Now the monthly fee for service one outlet in the market average ranges from $50 to $100.
And tariff policy of the national Bank encourages the financial institutions to expedite the process of reviewing the cost for its customers. It is interesting that the NBU is considering the ongoing reform as a way to raise salaries to its collectors, cashiers and other personnel. This is the second reason of increase of tariffs.
The third is to encourage financial institutions to work with the designated banks.
The above mentioned problem actually exists. Commercial banks are not too willing to use the services authorized by the national Bank of financial institutions. But this is not their whim, and the quality of services past.
After all, in contrast to the NBU, for which the provision of cash flow is part vested in the office of state functions, the commercial banks perceive the work with cash its competitors as a business. The regulator establishes the maximum tariffs and specific commitments. As a result, financial institutions often easier and cheaper to drive an extra 100-200 km to the nearest territorial division of the NBU than donating cash to the designated Bank.
The new Commission for reception of cash in national Bank will definitely encourage bankers often use the services of “appointees” of the regulator. Moreover, it is possible that someone from the financial institution decides to allocate a job with cash in strategic direction. Becoming, thus, a specialised Bank.
Finkompany want more power
However, the national Bank could go the other way. Allowing CIT-companies (financial companies, has received a permit for a cash collection) not only to transport, store, and count the cache, but trading them between banks, to surrender to the NBU, as well as list of legal entities non-cash money in exchange for the adopted cache.
This would significantly speed up the turnover of cash (which, among other things, would lead to the decrease of its volume), as well as to reduce the cost of collection. First, due to the fact that highly specialized CIT-companies can more efficiently establish cash flow due to the larger number of customers. Some of them already have parks collector cars 70 cars, which is comparable to banking services collection.
However, the NBU, in spite of the assurances, in no hurry to expand the authority of financial companies. Moreover, some taken before the change still can not be implemented in practice because of incomplete regulatory framework. For example, CIT-companies can count and store received from business cache, however, the receiving Bank counts the money again, and takes Commission for it. As approved by the NBU documentation for non-banking cash collectors are still there.
If the national Bank will allow CIT-companies to trade cash between banks, they are generally unable to dispense cash services regulator. For example, will be on behalf of the financial institution to load cash in its ATMs, to reinforce the Bank counter, etc.
This is a very common practice in Europe where many banks have refused to own of collection services and gave these functions to CIT companies. Some of them are real monsters, for example, Brinks, Loomis, Prosegur, G4S, Garda, Securitas.