The largest Ukrainian bank PrivatBank suggests revising the current system of deductions of banks for the Deposit Guarantee Fund, which ultimately will allow increasing the maximum amount of compensation for depositors in case of bank failure, the president of PrivatBank Oleksandr Dubilet said in his interview with the Evening Kyiv newspaper.
In his view, currently, the increase in amount of mandatory compensation in case of bank failure is justified. At the same time, banks, which conduct aggressive policy and attract investors with ultra-high rates should compensate for the risks by increasing size of deductions to the Deposit Guarantee Fund.
"It will definitely enhance the public confidence in the banks. At the same time, the system of deductions to the Deposit Guarantee Fund should be made fairer. The amount of deductions of the banks should depend on the level of interest rates: the higher deposit rates are, the larger the size of deductions to the fund should be," he said.
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