UDC 336.722.11
Servetnyk, I. V. (2012). Nadiynist' roboty Fondu harantuvannya vkladiv fizychnykh osib za umovy otrymannya povnovazhen' vyvedennya bankiv z rynku [Reliability of the Deposit Guarantee Fund Subject to Obtaining the Competences to Resolve Failed Banks]. Rehional'na ekonomika - Regional Economy, 65(3), 129-139. [in Ukrainian].
Sources: 15

Authors

Resume

The functions of the Deposit Guarantee Fund (hereafter the Fund) as related to the fulfillment of its obligation to the depositors of the banks are examined and the reliability of its work under condition of not having the competences to resolve failed banks as well as under condition of acquiring these competences and with the different values of the average payout cost reduction is evaluated. The need to increase public confidence in the banking sector in post-crisis period requires effective deposit protection mechanism including effective liquidation and sale procedures, which can help to improve financial viability of the Fund. Also attention is paid to the key financial risk of the deposit guarantee system – insufficiency of the funds as it is directly related to the ability of the system to perform its primary function of the deposit protection. Effective management of this risk in the terms of Ukrainian banking system and financial safety net is possible through granting the Fund with the competence of failed banks resolution. Also the relations between the reliability of the Fund operations and the average expected effectiveness of the bank resolution procedures are analyzed.

Keywords:

Deposit Guarantee Fund, deposit insurance system, failed banks resolution, liquidation, the competence of the deposits insurer