The analytical note is devoted to the problem of imperfection of existing\nbank protection safeguards.<\/p>\n\n\n\n
In Ukraine, one of such safeguards is the deposit guarantee system for the\npopulation. At the same time, it must protect the banks from bank runs, while depositors\n\u2013 from \u201cmoral hazard\u201d.<\/p>\n\n\n\n
It is typical for Ukraine to have the situation where depositors bring\ntheir money to the banks that offer the highest interest rates on the deposits.\nFurthermore, people do not consider the reliability of the banks since the Deposit\nGuarantee Fund will return their deposit with interest in the guaranteed amount\n(it is UAH 200 000 now).
\n
\nThis makes the banks compete, increasing interest rates on deposits. The banks,\nin turn, are forced to look for more profitable, and therefore, more risky tools\n\u2013 i.e. to lend to risky borrowers at higher rates.<\/p>\n\n\n\n
This behaviour of depositors and banks increases the overall risk of the\nsystem and ultimately leads to bank collapses.
\n
\nThe problem of effective design of the deposit guarantee system aimed at\nfinding a balance between \u201cmoral hazard\u201d and \u201cbank runs\u201d is very relevant for\nUkraine, because saving banks is an expensive thing for taxpayers. During the\ncrisis of 2008-2009, Ukraine spent 5% of GDP for the recapitalization of banks,\nwhile during the crisis of 2014-2015 \u2013 14% of GDP. Every time it led to an\nincrease in public debt (government bonds) \u2013 thus, in a deterioration in the\ncountry\u2019s financial stability.<\/p>\n\n\n\n
In order the guarantee system could respond more effectively to crises, we\noffer 5 changes:
\n
\nTo increase the guaranteed amount up to UAH 500 000 (to index the inflation);<\/p>\n\n\n\n
To decrease the start of payments to depositors up to 7 days (starting with\nthe time when the bank is recognised insolvent);<\/p>\n\n\n\n
To reduce the guarantee of interest on deposits up to half of the official\nrate of the NBU;<\/p>\n\n\n\n
To stimulate the implementation of the policy of liability of owners with all\ntheir property in practice, not only on paper;<\/p>\n\n\n\n
To promote increased financial literacy of the population and to reduce the\ninformation asymmetry.\n\nWhen calculating the optimal amount of guarantee,\nwe took into account:
\nthe inflation rate, which made up 140% for the period from September 2012 (when\nthe amount of UAH 200 000 was fixed) to mid 2018;
\nEuropean guaranteeing practices, in particular, the ratio between the guarantee\namount and GDP in the EU (post-Soviet states, e.g. Estonia, Slovakia).\n\n\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"
The analytical note is devoted to the problem of imperfection of existing bank protection safeguards. In Ukraine, one of such safeguards is the deposit guarantee system for the population. At the same time, it must protect the banks from bank runs, while depositors \u2013 from \u201cmoral hazard\u201d. It is typical for Ukraine to have the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[176,197,143],"tags":[560],"experts":[215],"news_type":[140],"class_list":["post-8341","post","type-post","status-publish","format-standard","hentry","category-macroeconomics-en","category-research-list-en","category-home-news-en","tag-financial-sector-en","experts-oleksiy-hamanyuk-en","news_type-researches"],"acf":[],"_links":{"self":[{"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/posts\/8341","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/comments?post=8341"}],"version-history":[{"count":0,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/posts\/8341\/revisions"}],"wp:attachment":[{"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/media?parent=8341"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/categories?post=8341"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/tags?post=8341"},{"taxonomy":"experts","embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/experts?post=8341"},{"taxonomy":"news_type","embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/news_type?post=8341"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}