KIEV, March 26 – A new law on the system of individuals' deposit guarantees, which establishes clear compensation conditions, will increase the confidence of depositors in Ukrainian banks, Moody's Investors Service said.

"Weak depositor confidence, excessive inflation and the crisis of the banking system in 2008-2009 made consumers withdraw one third of their deposits from accounts. The absence of a reliable system of deposit insurance aggravated the situation," an agency review reads.