The first meeting of the Standing Committee of the National Bank of Ukraine and the Deposit Guarantee Fund (hereinafter – the Committee) took place on September 4, 2014.

The Committee has been set up with the aim of coordinating activities to ensure a prompt exchange of information between the regulator and the Deposit Guarantee Fund (hereinafter – the Fund) and close cooperation on issues of common interest, as well as adopting consistent decisions. The Committee meetings shall take place on a regular monthly basis.

The Committee comprises 4 representatives of the National Bank of Ukraine and 4 representatives of the Fund. It is co-chaired by First Deputy Governor of the National Bank of Ukraine Oleksandr Pysaruk and Managing Director of the Fund Vasyl Pasichnyk.

"Ensuring an effective and prompt interaction between the National Bank of Ukraine and the Fund is crucial, especially in the context of the financial crisis and the difficult situation in the country. In my opinion, such concerted efforts by the National Bank of Ukraine and the Fund will make it possible to improve the handling of problematic banks and a bank resolution mechanism. As a result, we hope to increase the protection of depositors' and creditors’ rights," noted Mr Oleksandr Pysaruk.

In the course the first meeting, the Committee members discussed a number of issues, specifically, the concerted actions by the regulator and the Fund to handle problematic banks, measures to improve the mechanism for establishing bridge banks, and the need for common information and financial education policies, in particular, with regard to the banks that have fallen within the category of problematic and insolvent financial institutions.

At the same time, the meeting participants concurred with the view expressed Mr Vasyl Pasichnyk that it was necessary to enhance promptness and transparency in providing a rapid response to the problems faced by banks. In the course the meeting, the meeting participants discussed, among other things, the successful fulfillment of the DGF's mandate, and the expediency of the establishment of a bridge bank and special aspects of its activities set forth in paragraph 3 of part 16 of Article 42 of the Law of Ukraine “On Household Deposit Guarantee Scheme”.