OTP Bank tops the rating of primary dealers in terms of trading volumes of government bonds in the secondary market
OTP Bank took the first place in the rating of primary dealers in terms of trading volumes of government bonds in the secondary market in January-February 2021, having risen one position compared to 2020. This was reported by the Ministry of Finance of Ukraine with reference to the National Commission for Securities and Stock Market.
In the overall rating of primary dealers in the 1Q2021, OTP Bank took the second place and became the first among non-state banks - primary dealers, in particular, in terms of trading volumes of government bonds denominated in hryvnia – the second place (the first one — among non-state banks) and in terms of the volume of government bonds denominated in US dollars and euros — the third position (the second one among non-state banks).
According to A. Kovalenko, the Director of the Department of Treasury and Financial Institutions of AT OTP BANK, the bank works actively with clients over the purchase and sale of government bonds. “Today the governmental bonds are one of the most attractive investment instruments for clients with minimal risks, higher profitability compared to deposits with relatively comparable risks. Due to the REPO with risk control product tool, clients got access to relatively inexpensive and quick liquidity. Clients, owners of government bonds, can quickly get hryvnia liquidity without selling their securities,” the banker notes.
According to the Ministry of Finance, for the first quarter of 2021 due to the issue of government bonds state budget received UAH 118.7 bln (USD 4.3 bln), of which UAH 91.7 bln. by placing government bonds in hryvnia; UAH 24.6 bln (in hryvnia equivalent) - via the placement of government bonds in the amount of 0.9 bln dollars. USA and 2.4 bln UAH. (in hryvnia equivalent) - through the placement of government bonds in the amount of 0.07 bln euros.
The status of a primary dealer provides banks with the right to buy government bonds directly from the Ministry of Finance in their own portfolio or at the request of other market participants.
Public Joint Stock Company OTP Bank is a subsidiary of OTP Bank, which is the largest independent Central-Eastern-European banking group. JSC OTP Bank is one of the largest domestic banks, a recognized leader in the financial sector of Ukraine. The Bank provides a full range of financial services to corporate and private customers, as well as to small and medium enterprises. The bank entered the Ukrainian market in 1998, and since then it enjoys a staunch reputation of socially responsible, reliable and stable institution providing its consumers with services of European quality standard.