KIEV, July 20 – The potential of the National Bank of Ukraine to support the economy is being curbed by the low lending activity of some banks, the NBU said in a letter to banks.

"The significant level of liquidity amid the insufficiently active use of free funds by some banks is limiting the NBU's ability to support the liquidity of those banks which actively work on the market and which are [aiding] the renewal of economic growth," reads the letter.

The amount of funds on banks' correspondent accounts has been at quite a high level recently - almost twice as high as the amount of the banks' obligatory reserves. Under such conditions, some banks are less "attentive" to the issue of raising funds from the population and have reduced their lending activity, the NBU said.