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Banking Interest and Discount Policy as a Tool for Monetary Regulation of Price Stability

Journal: Herald of the Economic Sciences of Ukraine (Vol.39, No. 2)

Publication Date:

Authors : ;

Page : 152-157

Keywords : NBU discount rate; refinancing rate; exchange rate; consumer price index; interest rate policy; credit policy.;

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The article examines the current state and prospects and directions of development of the bank's monetary policy. An important problem of financial management in today's market conditions is an effective monetary policy that links the required volumes of banking product with the acceptable overall level of rates and the relative value of the net interest spread and margin. Equilibrium monetary policy combines the rates of borrowed and placed funds with the strategic objectives of the development of banking institutions, maintaining their profitability and financial stability. The essence of the interest rate policy of NBU and commercial banks, its impact on the banking system as a whole is considered. The main goal of the interest rate policy are determined, the external and internal factors that shape it are considered. The basic principles on wich the interest rate policy of the bank is based and the stages of its formation are studied. The dynamics of the discount rate of the NBU for 2008-2019 is analyzed. It is established that the competitiveness and stability of the bank depends on a well-developed inrest rate policy, as a result of which the impact of interest rate risk extends to the financial results of the bank. The amount of interest also contributes to more efficient use of business entities' own funds, because, keeping them in the bank on a current or deposit account, they have the opportunity to receive additional income.

Last modified: 2021-03-17 02:20:56