APPLICATION OF ESCROW FUNDS AS AN OBJECT OF DEPOSIT GUARANTEE COVERAGE

Abstract

This thesis examines the economic, legal, and practical aspects of applying funds held in escrow accounts as an object of deposit guarantee coverage. An escrow account is interpreted as a special banking instrument that serves the purposes of conditional safekeeping, secure settlement, and protection of the beneficiary’s interests. The study substantiates that the inclusion of escrow funds in the deposit guarantee system may increase confidence in banking services, reduce settlement risks in large-scale transactions, and expand the resource base of commercial banks.