Ukraine's Rada adopts a governance overhaul of the Deposit Guarantee Fund

Ukraine's parliament adopted a law on 28 October that would change how the Deposit Guarantee Fund, which runs the guarantee system for individuals' deposits, is governed, the Verkhovna Rada's press service said. Danylo Hetmantsev, chair of the finance committee, submitted the bill.

The Rada's summary says the law, registration number 15269 of 25 May 2026, amends the Law on the Deposit Guarantee System for Individuals. It updates the composition and formation of the Fund's Administrative Council, strengthens the requirements for its members, clarifies those for the Executive Board and sets up an Audit Committee of the council in statute. It changes the selection of the managing director, adds a management continuity mechanism, lets the managing director appoint and dismiss deputies, updates the rules on internal audit and widens public access to information on bank resolution procedures. It also clarifies the Fund's accountability and reporting and the powers of the council and the Executive Board.

The summary gives no numbers. When the bill was registered in May, Liga Zakon's analysis of the text said it would enlarge the council from five to seven members: two each from the Cabinet of Ministers, the National Bank and the parliamentary committee, plus the managing director ex officio, ending what it called the National Bank's double representation on the body that decides on bank liquidations. It said the managing director would be chosen through an open competition with a recruitment firm and a selection commission, and that reports on spending for temporary administrations and liquidations would be published. Whether the adopted text kept each of these points is not stated in the Rada's summary.

The Rada passed the bill at first reading on 16 September, Mind reported. Liga Zakon said the changes concern participant banks, creditors of insolvent banks and depositors. Our opinion on bank resolution backstops argued that a credible, pre-arranged backstop shapes market trust in resolution; the Real Bank verdict showed how long failed-bank cases run. The changes apply only once the law enters into force, and the Rada's summary gives no date for that.