Deposit policy of Ukrainian banks: current realities and prospects

Olga Kneysler,Nataliya Spasiv,Iryna Khomyn,Liliya Marynchak

doi:10.21511/bbs.14(2).2019.07

Abstract

Deposit policy of banks is defined as an important component of the banking strategy, since banks operate mainly with attracted resources. Therefore, volume and quality of the resource base of banks determine their opportunities for lending and investment activity. An important component of the study is the impact of the National Bank of Ukraine on the deposit policy of commercial banking institutions in terms of interest rate policy and deposit insurance system, which needs to be improved. The author’s definition of the term “deposit program” is proposed, and a determining factor in a bank’s deposit program is that it is developed individually and is aimed at providing the required amount of attracted resources in order to maximally meet the needs of customers and taking into account the priorities of the bank. The prospects for improving the deposit policy of the banks are highlighted as providing marketing innovations is a prerequisite for ensuring competitiveness. They need to be implemented systematically and interconnected with other business processes, including introducing new types of accounts and modern channels for selling banking products. In particular, due to the pension reform in Ukraine, the non-state pension insurance system is developing, and opening of IRA for clients is a promising direction for attracting funds by commercial banks.

Highlights

A stable, efficient and effective banking system is a source of investment incentives and innovative development, an important prerequisite for the country’s economic growth
Deposit and investment certificates, credit and all the methods combine the fact that the deposit instruments with floating interest rates, client is always at the center of attention and the different types of bonds, financial oper- wishes and expectations
The term “deposit program” is proposed to be interpreted as a set of various types of deposits offered by a specific bank for different categories of clients under the relevant conditions, which are secured by deposit agreements

Summary

Introduction

A stable, efficient and effective banking system is a source of investment incentives and innovative development, an important prerequisite for the country’s economic growth. 2012, the functioning of the system of guaran- ly important to have an effective deposit policy teeing deposits of individuals and its activi- implemented by each individual bank in order ties is regulated by the Law of Ukraine “On the to maintain competitive positions in the market system of guaranteeing deposits of individu- and to create the necessary volume of the resource als”.

Results

Conclusion