Reserve requirement is one of the conventional monetary policy instruments used by the NBU to determine the percentage of attracted deposits and other liabilities, which banks must set aside (usually on their correspondent account with the NBU).  At the same time, different reserve ratios may apply to various types of deposits and liabilities, depending on the currency, term, and sources (individuals or legal entities) of deposits, etc. Thus, by regulating the reserve requirement ratios, the NBU can influence the amount of the banks’ spare liquidity, the currency and term structure of their balance sheets, thereby contributing to the achievement of the NBU's priority goals.