Minimum authorized capital of banks raised from UAH 120 million up to UAH 500 million
On July 11, 2014, Law № 1586-VII on entering changes to some enactments of Ukraine concerning prevention of negative effects on stability of the banking system» comes into force.
The law streamlines a financial support mechanism of the Deposit Guarantee Fund to raise long-term funds needed to reimburse the depositors the insolvent banks cannot repay.
Thus, the Fund makes risk assessment to check whether it is enough money or not in circulation, and does it on a yearly and quarterly basis along with making monthly adjustments. If money shortage risk is defined, in case the law on government budget does not envisage such expenses, the Fund submits an application for a loan issue to the Ministry of Finance (on non-repayable terms) at the expense of the government budget.
Within a monthly term starting from the date of application receipt, the Ministry of Finance elaborates and submits a draft bill. A loan or deposit on a non-repayment basis can be given in cash or as domestic government bonds.
The law envisages also possibility of changing the liquidation procedures, etc.
