History of Development of JSC "Oschadbank"

The first savings institutions in Ukraine emerged in Halychyna in the second half of the 18th century. In Western Ukraine, the district cash offices of the Governorate started to accept savings of individuals. The Galician Savings Office started its activities in Lviv on the basis of a special royal privilege in 1843. It used "Work and Save!" as a slogan and an ant as its mascot. Kyiv City Savings Office started its operations as a standalone institution in 1863.

Savings offices were referred to as state savings offices in accordance with their new charter since 1895. This addition emphasised the liability of the state for the money invested in them. The savings system was further developed at the times of tsarist Russia, Austro-Hungarian Empire and Poland.

World War I started in 1914 affected the financial and banking system of Western Ukraine adversely. It was only after the reform of the year 1924 that the development of savings offices in the Western territories resumed. In 1917-1921, savings offices in the East of Ukraine were liquidated; they were restored in 1922 upon Ukraine's accession to the Soviet Union. Soviet-style savings offices floated bonds, performed deposit operations, supported the introduction of tchervonets and their exchange for roubles in 1924.

One should remember that after 1932 savings offices were transformed into monopolistic credit institutions raising the savings of the population to satisfy the needs of the state. The development of savings offices could have continued if not for the war, which caused the closure and evacuation of savings institutions, the loss of depositor books, etc. Restrictions on the cash disbursement from deposits were lifted after 19 January 1944; deposits were issued upon the first request of a saver.

Radical changes in operations of savings offices took place in 1963, when the network of the State Labour Savings Offices of the USSR was handed over by the Ministry of Finance to the State Bank. As a result, the savings offices ceased to channel the deposits into the state budget and started using them for setting up the universal union lending fund (Ukraine's share in 1970 equalled 19.6%). The full self-sustainability was introduced in savings offices since 1972.

At the end of 70s and in 80s, the revenues of the population increased rapidly, as well as the savings. The inflation made it necessary to reform the banking sector in 1988, and the network of savings offices was transformed into the network of the Savings Bank of the USSR.

On 31 December 1991, Oschadbank was registered as an independent banking institution named "State Specialised Commercial Savings (Oschadny) Bank of Ukraine" with the National Bank of Ukraine. The State Specialised Commercial Savings (Oschadny) Bank of Ukraine was transformed into Joint Stock Company "State Savings Bank of Ukraine" (with the short name of JSC "Oschadbank") with Resolution of the Cabinet of Ministers of Ukraine of 21 May 1999 in pursuance of the Instruction of the President of Ukraine of 20 May  1999.

In accordance with the Resolution of the Cabinet of Ministers of Ukraine N 502 as of April 6, 2011 "On Amendments to the Resolution of the Cabinet of Ministers of Ukraine N 261 as of February 25, 2003" on the June 7, 2011 the name of the Bank has been changed to the Public Joint Stock Company "State Savings Bank of Ukraine", short name - JSC "Oschadbank".

The Bank is in possession of banking license N 148 of 05 October 2011 for carrying out of banking activity. The state in the person of the Cabinet of Ministers is the founder of the Bank.

JSC "Oschadbank" - it is the only Ukrainian bank, where individual deposits and their repayment in full on the first demand are guaranteed by the state by law.