The main objective of the document is to reduce the time required to commence compensation payments and to ensure the effectiveness of the deposit protection system. According to the draft, the bank responsible for reimbursing citizens in the event of bankruptcy or license revocation of a participating bank will be selected in advance rather than during a crisis period. The preliminary selection procedure is planned to be conducted once every three years.
To participate in the competition, a commercial bank must meet the following strict requirements:
- be a participant in the deposit protection system;
- have sufficient own capital and capital adequacy ratios in accordance with National Bank regulations;
- have no significant sanctions or supervisory measures imposed by the regulator during the past six months;
- possess an extensive branch network covering the regions where depositors are located.
Based on the results of the competition, the Agency will form a reserve list consisting of one to three banks. Contracts with the selected banks will be concluded for a three-year term.
The draft also contains an important provision concerning state-owned banks. If private financial institutions do not submit applications for the competition or fail to meet the established requirements, the Agency, in coordination with the National Bank, is entitled to appoint a bank with more than 50 percent state ownership as an agent bank. In such cases, the state-owned bank is obliged to enter into an agreement to perform compensation payment functions and has no right to refuse.
When an actual guarantee event occurs (bankruptcy or license revocation of a participating bank), the Agency within one day requests information from the National Bank on the current status of partner banks included in the reserve list. The regulator must respond within two days. This mechanism enables the fastest possible launch of the compensation payment process and allows for the selection of the most prepared and convenient agent bank for depositors.