Development of the bank deposit insurance system in Ukraine

Abstract

The paper examines the peculiarities of the formation and development of domestic bank deposit insurance systems. It has been established that one of the conditions for the normal operation of the banking system is the presence of appropriate systems to support their viability - bank deposit insurance systems. To date, such systems, with rare exceptions, function in most countries with a market economy. Bank deposit insurance systems perform two equal functions: first, they protect individuals and legal entities - clients of the banking system from the loss of their deposits (both partial and full) by paying insurance compensation; secondly, provide financial support to insolvent credit organizations, thereby stabilizing the banking system as a whole. It was established that the creation of the domestic insurance system of bank deposits was based on the American model with appropriate adaptation to domestic realities. Two main stages of the development of the system of protection of bank deposits in Ukraine are distinguished: 1. The nascent period (1998-2012). It is characterized by active legislative regulation of relations in the field of deposit insurance, practical experience is gained and its systematization is carried out, mistakes made are analyzed. 2. Stabilization period (2012 - to date). It is characterized by a comprehensive update of the legislative regulation of relations in the field of deposit insurance. Point changes are made to the current legal field taking into account crisis situations arising in the financial sphere of Ukraine. The domestic system of insurance of bank deposits provides citizens with the return of their funds placed in banks, in the event that the latter are unable to satisfy the demands of depositors regarding the return of their deposits.