Photo: NBU Press Service
All deposits of Ukrainians will be guaranteed by the state
A 100% guarantee on deposits of individuals for the period of martial law will give confidence to Ukrainians in maintaining their savings, the NBU noted.
The Verkhovna Rada has introduced a 100% guarantee on bank deposits for the period of martial law. The people’s deputies adopted the bill No. 5542-1 with a total of 298 votes “for” at the plenary session on Friday, April 1.
The norms of the bill provide that after the end of martial law, the guaranteed amount of deposits in banks will increase three times – from the current UAH 200,000 to UAH 600,000.
Earlier, the National Bank of Ukraine and the Deposit Guarantee Fund supported the initiative of President Volodymyr Zelensky to introduce 100% state guarantees for household deposits.
As noted then in the NBU, a 100% guarantee does not mean that the need for compensation of deposits of all banks will definitely rise. Before the start of the war, the banking system had a significant margin of financial strength, showed solid indicators of profitability, capitalization and liquidity, so today it can withstand the challenges caused by the war.
“A 100% guarantee on deposits of individuals for the period of martial law will give Ukrainians confidence in the preservation of their savings, because the state guarantees every citizen the return of his funds in full. The introduction of a 100% guarantee on bank deposits for the period of martial law is an additional mechanism support for banks,” the regulator said.
As of February 1, 2022, the total amount of deposits of individuals (including individual entrepreneurs) in the banks participating in the Deposit Guarantee Fund amounted to UAH 658.3 billion. Deposits of 98.1% of depositors in the fund’s member banks do not exceed UAH 200,000 (UAH 245 billion).
Recall that during the war, Ukrainians withdrew UAH 35.5 billion from their accounts. The National Bank explained the high level of liquidity of the banking system, despite the outflow of deposits.