On 26 February 2013, Mr. Yevgen Sigal, People’s Deputy of Ukraine, registered draft laws of Ukraine No. 2400 on Amendments to Article 2 of the Law of Ukraine on Banks and Banking with regard to individual deposits, which envisages imposing a ban on deposits in the foreign currency, and draft law No. 2401 on Amendments to the Tax Code of Ukraine regarding individual deposits, which is aimed at imposing a 25% tax on the portion of interest income earned from current or deposit bank accounts from 1 January 2014.

The National Bank of Ukraine as the banking industry regulator opposes to the aforementioned initiative to impose a ban on deposits in the foreign currency and a tax on interest income earned from bank deposits. On the contrary, the policy pursued by the National Bank of Ukraine is aimed at stimulating the growth of deposits, which is in line with international practices.

Thus, individual deposits grew by UAH 15 billion over the January-February period, which is an indication of the growing public confidence in the banking system.

In this respect, the NBU senior management has raised concerns over unnecessary politicization of the economic issues. Unfortunately, the aforementioned initiatives have resulted from the failure of lawmakers to study the issues in question thoroughly.

Therefore, the National Bank of Ukraine calls on lawmakers to carry out an in-depth regulatory impact analysis on any draft laws on the banking and financial system initiated by the Verkhovna Rada of Ukraine, and adhere to the principle of giving entire priority to ensuring the stability of the country’s financial system and showing respect for its citizens.