DEPOSIT GUARANTEE FUND (DGF)
+380-800-105-800 * +380 44 333-35-63
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UA
+380-800-105-800 +380 44 333-35-63

Deposit Guarantee Fund

Mission

The Deposit Guarantee Fund was established to insure deposits, protect the rights of creditors, raise financial literacy to reinforce public trust in the state financial system, and enhance the welfare of people.

Vision

The Deposit Guarantee Fund is a transparent, innovative, and reliable partner for preventing financial losses and setting benchmarks for deposit insurance systems globally.

Maximum coverage limit
If the National Bank of Ukraine decides on the liquidation of a bank during the period of martial law and three months following its termination or cancellation, the Deposit Guarantee Fund will reimburse each depositor of such a bank in full, including interest accrued. 
Three months after the termination or cancellation of martial law in Ukraine, the guaranteed amount of reimbursement including interest accrued, shall be UAH 600,000.
Members of the Deposit Guarantee Fund
Deposit Guarantee Fund membership is composed exclusively of the banks. Nonbank financial institutions are not members of the Deposit Guarantee Fund and their deposits are not covered. 
Depositors coverage
The Deposit Guarantee Fund guarantees to pay out deposits to individuals and sole traders. Deposits by legal entities are not covered.
Deposit products coverage
The Deposit Guarantee Fund covers current/card, saving deposit accounts in national and foreign currencies, except for deposits in banking metals. The full list of deposits not covered by the DGF is given in Article 26 of the Law of Ukraine on the Household Deposit Guarantee Scheme.
Mandate and the powers of the Deposit Guarantee Fund
Loss minimizer.1
The main powers:
  • accumulates and manages membership fees;
  • pays compensation for deposits in case the bank fails;
  • resolves banks, independently choosing the most appropriate method based on the least cost method;
  • carries out liquidation of the bank, manages and sales its property to satisfy claims of the creditors;
  • determines the rate of regular and special premiums;
  • analyzes financial position of banks in order to identify risks in their operation.
Deposit Guarantee Fund legal structure
The DGF is a public law entity, an economically independent, non-profit institution.
Deposit Reimbursement 
Deposits pay out begins no later than 20 days (for the banks with more than 500,000 deposit accounts – 30 days) from the date of the beginning of the bank resolution procedure.

Key facts about the Deposit Guarantee Fund

  • The  DGF was established pursuant to the Decree of the President of Ukraine ‘On Measures to Protect the Rights of Individual Depositors of Commercial Banks’. The initial amount of compensation was UAH 500;
  • During the global financial crisis of 2008-2010, 24 banks were declared insolvent. The liquidation of these banks was carried out by the National Bank of Ukraine. The Deposit Guarantee Fund paid out their depositors UAH 3.61 billion of guaranteed compensation;
  • In 2012, as part of the deposit guarantee system reform, the Law of Ukraine on the Household Deposit Guarantee Scheme was adopted. According to the Law, the DGF received the powers to resolve insolvent banks and manage assets of the banks being liquidated.
  • During the crisis of 2014-2017, the DGF carried out resolution of 94 insolvent banks.
  • Considering the large volume of assets of the failed banks in 2016, at the initiative of the DGF, in partnership with the Transparency International Ukraine, Prozorro.Sales electronic trade system was created to sell the assets of the banks being liquidated. Since 2017, all auctions of the DGF have been transferred to this trade platform, ensuring openness and transparency of the process. All funds received from the sale and management of the banks assets are used to satisfy the claims of the creditors of the banks being liquidated.
  • On April 13, 2022, the Law of Ukraine ‘On Amendments to Certain Laws of Ukraine on Ensuring Stability of the Household Deposit Guarantee Scheme’ entered into force, in particular, providing for:

introduction of blanket deposit guarantee on funds of individuals and sole proprietors for the period of martial law and three months following its termination or cancellation;

three months after the termination or cancellation of martial law, the guaranteed amount of reimbursement will be at least UAH 600,000.

restructuring of the DGF’s debt obligations to the state arose in 2015 and 20164

joining of the state-owned Oschadbank to the household deposit guarantee system.


[1] According to the definition of the International Association of Deposit Insurers (IADI).