Theoretical nature and necessity of deposit guarantee fund

Abstract

In the current socio-economic conditions the implementation of involvement in the economy of Ukraine of financial investment resources, funds that would be directed to increase production and real sector of economy are particularly relevant. People's savings are one of the largest sources of investment funds. The aim of study can be detrmined as the analysis and presentation of theoretical essence of category "savings", grounding of their necessity and involvement in  the banking system of Ukraine. The problem of  the use of public funds in the economy is of national importance.

The article presents a comparative analysis of the concept "savings". On the basis of the existing definitions of scholars the author has formulated his own definition. It has been pointed the function of savings as the investment in the economy of the state through banks. It has been indicated that exactly the individuals savings are the main source of the banks' resources which can perform the role as creditor of the national economy. It has been emphasized the strengthening of confidence to banking institutions. The effectively constructed system of deposit insurance play an important role in this case. It has been analyzed the objective of this system and a number of international banking crises. They indicate the feasibility of the Deposit Guarantee system. It has been studied the history of the world's first system of deposit insurance which is called FDIC: Federal Deposit Insurance Corporation. Also it has been presented the history of its creation in other countries. The study presents the types of system of bank deposits insurance. The concept of savings is refined. It has been noted the further strengthening of  the role of trust to banking institutions. It is necessary to improve the deposit guarantee system system in Ukraine. This very problem will become the basis of our future research.