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New NBU and deposit fund rules will hurt banking sector, says UCBU
Journal Staff Report

KIEV, Jan. 24 – The introduction of new restrictions by the National Bank of Ukraine and the Individuals' Deposit Guarantee Fund will complicate the attraction of public funds to the banking sector, the Ukrainian Credit-Banking Union said.

"The new methods put banks which conduct an aggressive or risky policy in the more favorable conditions than banks sticking to a balanced policy," said the UCBU, commenting on draft amendments to the procedure for calculating and paying fees to the Individuals' Deposit Guarantee Fund.

The association said that a risk of bankruptcy of a bank first depends not on the deposit rates, but on the quality of a credit portfolio, but this risk is not taken into account in the document.




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