Estimation of the Mandatory Deposit Insurance Fund Sufficiency

The Agency continued its work focused on development of risk management system allowing to forecast the sufficiency of the Fund in the forthcoming period.

According to Article 41 of the Deposit Insurance Law, the Agency calculated the amount of the Fund, sufficient to cover forecasted payouts to depositors in 2009. For forecasting the Fund cash flows the Agency used the Methodology for Estimation of Financial Strength of Mandatory Deposit Insurance Fund, using statistical processing of banks' financials and other reporting, as well as data on bank bankruptcies for the period from 2000 through 2008. Forecast of Fund planned earnings and statistically expected payouts has demonstrated that the Fund’s size would be sufficient throughout the year for performing eventual insurance payouts to depositors, while there would be no necessity in federal budget expenditures for covering the Fund deficit in 2009. This issue was considered by the Agency Board of Directors.