KYIV, Feb 26 – The introduction of a new liquidity coverage ratio (LCR) by the National Bank of Ukraine (NBU) would strengthen liquidity profiles at Ukrainian banks and reduce their liquidity risk, Moody's Investors Service reported.

"Ukrainian banks’ funding is largely short term, with more than 70% of banks' liabilities having maturities of up to three months, according to the NBU. Demand deposits account for more than 40% of banks' liabilities, and we expect that the new requirements likely will encourage banks to increase their focus on longer-term funding sources such as term deposits or term borrowings, thereby improving their liquidity and funding profiles," Moody's said in a survey.