A 100% guarantee on deposits of individuals for the period of martial law will give confidence to Ukrainians in maintaining their savings, the NBU says.
The Verkhovna Rada has introduced a 100% guarantee on bank deposits for the period of martial law. The people’s representatives approved bill No. 5542-1 with a total of 298 votes “for” in the plenary session on Friday, April 1st.
The standards 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 thousand to UAH 600 thousand.
Earlier, the National Bank of Ukraine and the Deposit Guarantee Fund supported the initiative of President Volodymyr Zelensky to introduce 100% state guarantee for household deposits.
As previously noted in the NBU, a 100% guarantee does not mean that the need for compensation of deposits of all banks will certainly increase. 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 now it can withstand the challenges posed by the war.
“A 100% guarantee on deposits of individuals for the period of martial law will give Ukrainians confidence in the protection of their savings, because the state guarantees every citizen the return of his funds in full. introduction of a 100% guarantee on bank deposits for the period of martial law is an additional support mechanism for banks, “said the regulator.
Beginning on February 1, 2022, the total amount of deposits of individuals (including individual entrepreneurs) in banks participating in the Deposit Guarantee Fund reached UAH 658.3 billion. The deposits of 98.1% of depositors in member banks of the fund will not exceed UAH 200 thousand (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.
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Source: korrespondent
