Resolution of insolvent banks

The DGF, according to the law, is an institution performing special functions in the area of withdrawing insolvent banks from the market. The main objectives of the DGF are to protect the rights and legitimate interests of bank depositors, strengthen confidence in the banking system of Ukraine, encourage the attraction of DGFs to the banking system of Ukraine, and ensure an effective procedure for resolution and liquidation of insolvent banks.

The legislation of Ukraine offers several tools that allow bidders to acquire an insolvent institution or a large part of its assets.

After the NBU declares a bank insolvent, the DGF introduces provisional (temporary) administration, announces a tender and sends an invitation to all potential bidders to participate in the tender.