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Kontselidze: Deposit Insurance Would be Justified if Capitalization Requirement will be Reduced

Kontselidze: Deposit Insurance Would be Justified if Capitalization Requirement will be Reduced

Archil Kontselidze, CEO of VTB Bank explains legislative initiative of deposit insurance by several benefits, despite the high trust of banking sector.

He regards, that many positive is supposedly envisaged for the sector.

He considers that there is not the need of insurance. The sector is grown dynamically, trust is high. Additional guarantees merely can encourage non-resident depositors. The expected effect will increased product in price. The system is an additional expenditure for a sector, country’s economy and population.

According to the banker, it might be justified if the capitalization requirement will be reduced. Now the rate is over 12%.