30 June 2021, Wednesday, 18:48 124

Rada To Increase Amount Of Guaranteeing Deposits Of Population 3 Times To UAH 600,000 And Allow Oschadbank To Enter DGF

Редактор: Daria Zubkova

The Verkhovna Rada intends to increase the amount of guaranteeing deposits of the population 3 times to UAH 600,000 and to allow the State Savings Bank (Oschadbank) to enter the Deposit Guarantee Fund (DGF).

235 MPs voted for the adoption of bill No. 5542-1 as a basis, with the minimum required 226, Ukrainian News Agency reports.

The bill defines the legal basis for Oschadbank to obtain the status of a participant in the system of guaranteeing deposits of individuals and the relevant provisions developed to ensure the smooth transition period of the bank.

The bill introduces such concepts as "target indicator", "adjusted capital", "trust fund".

Also, the bill provides for the regulation of such issues:

- ensuring the smoothness of the process and minimizing possible risks in order to obtain Oschadbank the status of a bank participating in the system of guaranteeing deposits of individuals;

- solving the issue of ensuring the financial stability of the system of guaranteeing deposits of individuals by calculating the required value of the target indicator, establishing the size of the base annual rate of the regular collection and introducing mechanisms for their calculation and the procedure for establishing;
- achievement of the required level of security of the system of guaranteeing deposits of individuals;
- introduction of provisions on the procedure for stress testing the system of guaranteeing deposits of individuals;
- improving the mechanisms for providing the DGF with credit support from the National Bank and the state;
- improvement of the procedure for setting the maximum amount of reimbursement of funds on deposits (in case of receiving appropriate recommendations from the Financial Stability Council), as well as a gradual increase in the amount of the maximum amount of reimbursement of funds on deposits up to UAH 600,000 (within a certain period) if the financial stability of the fund is ensured.
The bill provides for special settlement mechanisms for the repayment of obligations under promissory notes that were issued by the DGF in 2015 and 2016 in exchange for government domestic loan bonds held by the Ministry of Finance, by transferring appropriate funds to the general fund of the State Budget of Ukraine, taking into account the need to ensure financial stability systems of guaranteeing deposits of individuals.
As Ukrainian News Agency earlier reported, Oschadbank belongs to the state, and deposits of individuals in the bank are 100% guaranteed by the state.
Individuals' deposits in banks - members of the DGF are guaranteed in the amount of up to UAH 200,000.