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Cooperation with the Savings Deposit Insurance Fund of Turkey

On December 1 2010, the Deposit Insurance Fund of Ukraine and the Savings Deposit Insurance Fund of Turkey signed the Memorandum of Cooperation to enhance the coordination of the development of deposit insurance systems in the two countries.

The Memorandum provides for an exchange in data and information to improve the mutual understanding of the economic situations and legal framework in the two countries, as well as the exchange of research findings and other information in the field of deposit insurance.

The Parties confirmed their commitment to cooperate through exchanging information, training events, consultations, joint research projects, etc.

December, 2010. Bilateral Seminar in Istanbul, Turkey

The bilateral seminar of the Deposit Insurance Fund of Ukraine and the Savings Deposit Insurance Fund of Turkey was held in Istanbul, Turkey, on December 1-3, 2010. The main goal of the event was to launch the cooperation on the issues of mutual interest, and exchange information and experience of deposit insurance.

The Turkish partners shared their experience, in particular regarding the mandate, responsibilities and major functions of the Savings Deposit Insurance Fund of Turkey. The participants discussed such issues as differentiated risk-based membership fees, risk monitoring and assessment techniques, the Turkish Fund’s major interventions during the last financial crisis, bank resolution and liquidation, etc.

The seminar provided for a general overview of the Savings Deposit Insurance Fund of Turkey, including the Fund’s mission/mandate, history, major functions, institutional framework and development milestones.

Particular focus was put on the deposit insurance system and practices, in particular:

  • The safety net system in Turkey
  • Cooperation with the regulator
  • Transition to the new mandate
  • Risk based membership fees
  • Risk monitoring

The participants discussed the Turkish partners’ experience of a failed bank resolution, overcoming the 2001 banking crisis in Turkey, resolution planning, as well as the Fund’s interventions, and the newly adopted process and methods of bank resolution. Important matters were asset management and liquidation, in particular the Fund’s powers associated with the bank resolution, and asset and liability management.

The Turkish partners’ experience is especially relevant in the context of the reformation of the deposit insurance system in Ukraine, which is to be based on the best international practices of effective deposit protection, and strengthening public trust towards the banking sector.

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Seminar Resolution of a Failed Bank (the experience of the Savings Deposit Insurance Fund of Turkey), February 2011, Kyiv City, Ukraine

The Deposit Guarantee Fund of Ukraine initiated the Seminar (Feb. 15-17, 2011) within the Memorandum with the Savings Deposit Insurance Fund of Turkey. The Seminar received support from the USAID Financial Sector Development Project. It involved experts representing the Savings Deposit Insurance Fund of Turkey, Deposit Guarantee Fund of Ukraine, National Bank of Ukraine, World Bank and USAID Financial Sector Development Project.

Mr. Vasyl’ Pasichnyk, the Fund Managing Director, opened the Seminar. Mr. Pasichnyk described the financial sector and deposit insurance system in Ukraine, and highlighted the importance of exchange of experience with international partners.

The experts of the Savings Deposit Insurance Fund of Turkey presented the current deposit insurance system in their country, including the system’s historical development, and transition to the current stage with new functions and responsibilities critical for the country’s financial safety.

The participants discussed risk monitoring, exchange of data/information between the insurer and the regulator, payment and settlement systems, risk based insurance rates, reserve management, and other important aspects of a stable financial system.

A special focus was put on the partners’ experience of dealing with problem banks and bank resolution, in particular the role of the Savings Deposit Insurance Fund of Turkey in this process; action planning; asset appraisal, management and sale; and bank liquidation.