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Cooperation with the Federal Deposit Insurance Corporation (USA)

The training program under the Memorandum of Cooperation between the Deposit Guarantee Fund (Ukraine) and the Federal Deposit Insurance Corporation (USA), October 2011, the city of Dallas, Texas, and Washington, DC, Virginia, United States.

During the 23rd – 30th October 2011, employees of the Deposit Guarantee Fund (hereinafter – the Fund) participated in the training program organized by the Federal Deposit Insurance Corporation (USA) (hereinafter — FDIC) under the Memorandum of Cooperation between the Fund and FDIC and the Joint Action Plan for 2011 — 2012.
The training was held in Washington, DC, Virginia and the city of Dallas, Texas.

The bank resolution process was the major topic of the training, held in Washington DC.

The training sessions covered the following issues:

  • Operational sequence of bank resolution
  • The design and content of «information package»
  • Marketing of a failed bank
  • Least cost test and the calculation of the least cost formula components
  • Resolution budget
  • Preparation and content of a resolution plan
  • Procedures and methods of asset valuation
  • Engagement of independent asset appraisers (outsourcing)
  • Procedures of holding a tender among qualified investors
  • Review and analysis of the submitted bids and selection of the tender winner
  • Financial support to the assuming bank
  • Other issues associated with bank resolution

A great deal of attention was paid to studying the FDIC’s role as a regulator, particularly in terms of on-site and off-site monitoring of financial institutions; data/information exchange and access to the databases of the department/unit responsible for bank resolution; and analysis of the advantages and disadvantages of the current resolution process.

The second training program, held in Dallas (Texas), provided for a discussion of a range of important topics:

  • The HR policies of that the FDIC employs, in particular, the requirements to the staff qualifications, the mandate associated with bank resolution, HR reserves, staff training, engaging and initial training of newly employed personnel, incentive system and performance evaluation, procedures for determining conflicts of interest with regard to the employment of staff, including the staff responsible for the bank resolution
  • The information technologies employed, in particular, the methods of gaining quick access to Intranet and Internet workstations, ensuring data security in case of equipment failure or other unforeseen circumstances, the means of safe access to information systems, in particular to the financial institution’s website, the criteria applied to measure the level of risk to which the data/information is exposed, protection of any personal data/information and data/information on the websites and servers, ensuring an uninterrupted operation of IT systems, and the overall design of the IT systems employed
  • Financial issues: budgeting (particularly, with regard to planning the resolution costs), investment policies, additional financial sources available to the FDIC (source, financing schedule and terms, and criteria based on which the FDIC may seek such additional funding), planning the FDIC’s potential expenditures and optimum budget (in particular, estimation methods and potential sources)
  • Calculating the differential risk based premiums, including the FDIC’s experience of transition to the differentiated system, methodological approaches employed to measure the risks of an individual bank, qualitative and quantitative criteria to differentiate the risks, methods to rate the banks by risk level and thus by premium rate, weighing the risk criteria, as well as ‘special premiums’ and the mechanism of revising the premium rates
  • Risk assessments, including off-site monitoring and analysis of financial institutions to identify the risks, and stress testing (the overall system and scenarios)
  • Consumer protection, disclosure of data/information, and the complaint (conflict management) system


Training Program «Deposit Insurance Assessments and Fund Management» in the framework of the International Association of Deposit Insurers, April 2011, the city of Arlington, Virginia, United States.

05th – 07th April 2011: employees of the Deposit Guarantee Fund (hereinafter – the Fund) participated in the Training Program on «Deposit Insurance Assessments and Fund Management» organized by the Federal Deposit Insurance Corporation (USA) (hereinafter — FDIC) in the framework of the International Association of Deposit Insurers in Arlington, Virginia (the USA).

The agenda provided for studying and discussing the following key issues:

  • The basic principles of the deposit insurance system and financing of deposit insurance systems
  • The impact of regulatory reform and systemic crisis upon financing and revenues in deposit insurance systems
  • Maintaining deposit insurance funds and the major revenue sources
  • The introduction of risk based premium systems, in particular the transition from a flat rate system to a system of differential premiums
  • The distribution of large and small banks in a system providing for risk based premium rates
  • Overall management of a differential system
  • Additionally, the participants examined the lessons and experiences of deposit insurance systems in other countries, such as the USA, Korea, Malaysia, Canada, Colombia, Kazakhstan, Taiwan, Russia, Germany, and the UK.

On the 8th April 2011, the Fund and FDIC met to discuss and approve a joint Action Plan for 2011-2012 in the framework of the Memorandum of Cooperation between the Fund and FDIC.

On January 12 2011, the Deposit Insurance Fund of Ukraine and the Federal Deposit Insurance Corporation (USA) signed the Memorandum of Cooperation. The parties are committed to maintaining the links and cooperation, providing mutual support, and jointly contribute to the development of the major aspects of deposit insurance.

Such a cooperation will enable an open and broad exchange in experience and ideas on financial services, deposit insurance, bank resolution, strengthening the public trust to the banking system, and ensuring financial stability. The discussion of the current trends in the macro-economic development and post-crisis developments will contribute to a fruitful bilateral dialogue on economic policies and financial safety to the benefit of the both countries.