Government will give troubled banks, the Deposit Guarantee Fund. This is necessary to concentrate under one roof, the process of liquidation of banks and collect money to pay depositors.
Experts believe that reformatting FGVFL take too much time, so the appropriate authority is better to concentrate in mega-regulator of the financial market.
Economics Minister Bohdan Danylyshyn sent a letter to the Board of Directors of the World Bank (WB), in which he announced the Government's consent to the recommendations of the World Bank on financial sector development. In particular, the Cabinet is prepared to transfer responsibility for the restructuring of troubled banks from the National Bank for the Deposit Guarantee Fund. According to the letter, the Administrative Council of the Deposit Guarantee Fund of individuals have already created a new division within the fund, which will serve on the banking restructuring.
similar division of authority exists in the U.S. - there is a reorganization of banks, the Federal Deposit Insurance Corporation (Federal deposit insurance corporation, FDIC).
government promises that the reorganization (the forced merger or liquidation) will be subject to all commercial banks, which by the end of 2009 could not reach normative values of the adequacy of regulatory capital at 10%. The requirement of adequate capitalization of commercial banks at year-end is one of the basic agreements between the Ukrainian government and the NBU on the one hand and the IMF with the World Bank - on the other.
According to the EI, at a recent meeting of the National Bank (incidentally, without a quorum after the dismissal of Alexander Savchenko) was announced intention to enter the NBU in the fourth quarter interim administration (VA) in 22 banks, which delayed payments and lose capital because of rising reserves for loan portfolio. Restructuring of these banks, apparently, and must be addressed Guarantee Fund.
explained executive director of banking supervision NBU Vasily Pasechnik, the idea of expanding the powers of the Deposit Guarantee Fund National Bank promotes more than a year. At the moment before the Rada a bill, which gives the fund the authority to administer troubled banks.
If the National Bank shall decide on the introduction of the Bank of VA or its liquidation, the fund is operational management of troubled banks and a number of tools to support it, such as placing a deposit or lending at the expense of NBU, - explains Pasechnik .- The challenge fund - to minimize their payments in the event of bankruptcy of a bank, so we believe that this separation of powers will be effective. In addition, the division of powers between the NBU and the fund will help remove a conflict of interest that exists today within the NBU when the central bank combines the functions of banking supervision and lender of last resort for troubled banks.
According Pasechnik, search for candidates for the position of the head of the reorganization of banks still continues. We have not found the right person - the official said.
The Rada Committee for Banking support the idea to transfer some functions of the reorganization of bank liquidation fund. I think the idea of sound transmission functions of the department of crisis management in the NBU Deposits Guarantee Fund, which would have controlled the work of temporary administrators. Today it is more than urgent, - said a committee member Vasyl Horbal.
Transfer of the reorganization of banks by the NBU to FGVFL will streamline the process of liquidation of banks and collect money to pay depositors. However, the changes must be introduced to the Law on Deposit Guarantee Fund, which make the conditions of permanent paralysis in Parliament rather difficult.
In turn, some bankers say that if the Cabinet will make attempts to shift responsibility for the restructuring of banks that would not be pulled out of the crisis Provisional Authority (BA today introduced the 13 banks), the Guarantee Fund this year, threatens to collapse FGVFL . For such a system work to a large number of qualified professionals who can act on the approved methodology, - says Director of Development of the corporate sector and branch network Prominvestbanka Vladislav Kravets. They say as long as fund deals only with the payment, and take on him yet and systemic work to liquidate - quite risky, because there is risk of loss of control over processes.
According to Vladislav Kravets, the regulators generally must consider whether the division of responsibility for the reorganization of financial institutions among the various state bodies. We are experiencing a crisis: will be closed, not only banks but also insurance companies and credit unions. In my view, functions to eliminate all financial establishments need to concentrate in one regulator. For example, a mega-regulator of financial markets based on the Financial Services Commission, if established, - considers the financier.
Levan Dzigua appointed the new CEO EMAlliance
The main movement of prices EUR /USD pair is in a range bound by 1.4585 - 1.4650
The processes of mergers and acquisitions in the pharmaceutical field and high-tech industry have led to another growth stock indexes USA
Overview of the oil market for 28.09.09
Koalitsemernaya policy FRG
In Ukraine the euro continues to lose position
Tymoshenko: The Commission recognized the SPF result of competition on sale of IPF invalid
Rationale
Despite low world prices for cereals, Ukraine once again got a chance to make good on this …
Index of the Frankfurt Stock Exchange Xetra DAX fell 21.56 points, the index of the London Stock Exchange FTSE 100 fell 13.64 points
Operation Liquidation
Government will give troubled banks, the Deposit Guarantee Fund. This is necessary to concentrate under one roof, the process of liquidation of banks and collect money to pay depositors.
Experts believe that reformatting FGVFL take too much time, so the appropriate authority is better to concentrate in mega-regulator of the financial market.
Economics Minister Bohdan Danylyshyn sent a letter to the Board of Directors of the World Bank (WB), in which he announced the Government's consent to the recommendations of the World Bank on financial sector development. In particular, the Cabinet is prepared to transfer responsibility for the restructuring of troubled banks from the National Bank for the Deposit Guarantee Fund. According to the letter, the Administrative Council of the Deposit Guarantee Fund of individuals have already created a new division within the fund, which will serve on the banking restructuring.
similar division of authority exists in the U.S. - there is a reorganization of banks, the Federal Deposit Insurance Corporation (Federal deposit insurance corporation, FDIC).
government promises that the reorganization (the forced merger or liquidation) will be subject to all commercial banks, which by the end of 2009 could not reach normative values of the adequacy of regulatory capital at 10%. The requirement of adequate capitalization of commercial banks at year-end is one of the basic agreements between the Ukrainian government and the NBU on the one hand and the IMF with the World Bank - on the other.
According to the EI, at a recent meeting of the National Bank (incidentally, without a quorum after the dismissal of Alexander Savchenko) was announced intention to enter the NBU in the fourth quarter interim administration (VA) in 22 banks, which delayed payments and lose capital because of rising reserves for loan portfolio. Restructuring of these banks, apparently, and must be addressed Guarantee Fund.
explained executive director of banking supervision NBU Vasily Pasechnik, the idea of expanding the powers of the Deposit Guarantee Fund National Bank promotes more than a year. At the moment before the Rada a bill, which gives the fund the authority to administer troubled banks.
If the National Bank shall decide on the introduction of the Bank of VA or its liquidation, the fund is operational management of troubled banks and a number of tools to support it, such as placing a deposit or lending at the expense of NBU, - explains Pasechnik .- The challenge fund - to minimize their payments in the event of bankruptcy of a bank, so we believe that this separation of powers will be effective. In addition, the division of powers between the NBU and the fund will help remove a conflict of interest that exists today within the NBU when the central bank combines the functions of banking supervision and lender of last resort for troubled banks.
According Pasechnik, search for candidates for the position of the head of the reorganization of banks still continues. We have not found the right person - the official said.
The Rada Committee for Banking support the idea to transfer some functions of the reorganization of bank liquidation fund. I think the idea of sound transmission functions of the department of crisis management in the NBU Deposits Guarantee Fund, which would have controlled the work of temporary administrators. Today it is more than urgent, - said a committee member Vasyl Horbal.
Transfer of the reorganization of banks by the NBU to FGVFL will streamline the process of liquidation of banks and collect money to pay depositors. However, the changes must be introduced to the Law on Deposit Guarantee Fund, which make the conditions of permanent paralysis in Parliament rather difficult.
In turn, some bankers say that if the Cabinet will make attempts to shift responsibility for the restructuring of banks that would not be pulled out of the crisis Provisional Authority (BA today introduced the 13 banks), the Guarantee Fund this year, threatens to collapse FGVFL . For such a system work to a large number of qualified professionals who can act on the approved methodology, - says Director of Development of the corporate sector and branch network Prominvestbanka Vladislav Kravets. They say as long as fund deals only with the payment, and take on him yet and systemic work to liquidate - quite risky, because there is risk of loss of control over processes.
According to Vladislav Kravets, the regulators generally must consider whether the division of responsibility for the reorganization of financial institutions among the various state bodies. We are experiencing a crisis: will be closed, not only banks but also insurance companies and credit unions. In my view, functions to eliminate all financial establishments need to concentrate in one regulator. For example, a mega-regulator of financial markets based on the Financial Services Commission, if established, - considers the financier.
Levan Dzigua appointed the new CEO EMAlliance
The main movement of prices EUR /USD pair is in a range bound by 1.4585 - 1.4650
The processes of mergers and acquisitions in the pharmaceutical field and high-tech industry have led to another growth stock indexes USA
Overview of the oil market for 28.09.09
Koalitsemernaya policy FRG
In Ukraine the euro continues to lose position
Tymoshenko: The Commission recognized the SPF result of competition on sale of IPF invalid
Rationale
Despite low world prices for cereals, Ukraine once again got a chance to make good on this …
Index of the Frankfurt Stock Exchange Xetra DAX fell 21.56 points, the index of the London Stock Exchange FTSE 100 fell 13.64 points