Ukrainians will withdraw all their money from their accounts due to the new mobilization law

If the current version of the mobilization draft law is passed, which proposes penalties restricting the control of funds for those who don’t comply with military registration, there will likely be a significant withdrawal of funds from the accounts of eligible men for military service. This is a prediction of Ukrainian bankers.

According to their assessment, when the voting stage arrives, withdrawals might begin, especially from ATMs and bank counters. The National Bank’s regulations allow individuals to withdraw 100,000 hryvnias or the equivalent per day, while the average deposit for individuals ranges between 200,000 to 300,000 hryvnias. Hence, men could potentially withdraw their funds within a few days if they are stored in current (checking) accounts. However, this scenario might not affect those who have invested in fixed-term deposits that can’t be terminated prematurely.

Moreover, there’s a likelihood that many individuals will opt to withdraw their money or invest in alternative assets like bitcoins or other cryptocurrencies as a precautionary measure to secure and protect their funds. During such uncertain times, there seems to be a decrease in trust in the banking system among people.

There was an initial expectation that the National Bank of Ukraine might intervene to protect the banks by excluding them from the military-related restrictions. However, indications suggest that the head of the NBU, Andriy Pyshnyy, may not oppose the military’s stance, potentially leading to the passage of the law. Nevertheless, amendments would be required in other laws that regulate banking operations and ensure the safeguarding of clients’ funds, except in situations ordered by a court for blocking or confiscation. Adhering to NBU guidelines would also necessitate time, during which men might deplete their accounts.