Deposit guarantee Fund
The new Finnish deposit guarantee scheme was introduced at the beginning of 1998. The aim of the system is to protect the depositors’ deposits in case an individual deposit bank becomes insolvent.
Deposit guarantee fond
All deposit banks have to belong to the common Deposit Guarantee Fund (Talletussuojarahasto; Insättningsgarantifonden).
Guarantee 50,000 euro
Depositors’ deposits and interest are compensated from the Deposit Guarantee Fund to a maximum of 50,000 euro. In the case a bank is not capable to pay the funds according to the deposit agreement, the Deposit Guarantee Fund will compensate the deposits within three months after the FIN-FSA (the Finnish Financial Supervision Authority) has found that a bank has not paid a depositor’s claim due to financial difficulties. Assets received from the sale of a residence in one’s own use are fully compensated, if the funds have been deposited in a bank no more than six months prior to the FIN-FSA has found a bank’s insolvency. All assets received from the sale of one’s own residence should be used for acquisition of a new residence.
Guarantee is depositor- and bank-specific
Notwithstanding the number of deposits, the deposits of one depositor in one bank are compensated to a maximum of 50,000 euro. Also banks that are fully or partially responsible for the commitments or obligations of each other are deemed one bank. The guarantee applies separately to the deposits of each family member and separately to each joint owner of a deposit account. A person with only the right to use an account is not a person referred to in the Act. All private persons, enterprises, foundations as well as public sector entities such as municipalities and parishes belong within the scope of the cover.
Branches of foreign banks in Finland
The branches of foreign banks established in Finland are subject to the cover scheme of their home State.
Contact
The daily administration of the fund is taken care by Secretary.
Legal Counsel
Pia Hidén from the Federation of Finnish Financial Services is the Secretary of the fund.
____________________________________________________________________________________________
Press release 28 June 2010
Deposits in Sofia Bank now covered
In accordance with the decision made in August by the Finnish Financial
Supervisory Authority (FIN-FSA), the Deposit Guarantee Fund has covered Sofia
Bank customers’ deposits for the amounts that the bank itself has been unable to
pay out after its liquidation. The vast majority of these payments have already
been made.
The 3-month period set for the payments ends on Tuesday 29 June. The Deposit
Guarantee Fund has requested depositors to provide either the Fund or Sofia Bank
with the number of the bank account to which the deposits are to be paid. If no
account number is given, the deposit will be paid to the Regional State
Administrative Agencies instead. In this case the Fund will send the depositor a
letter with instructions on how to request the payment from the Agencies.
Additional information:
Pia Hidén, Secretary, Deposit Guarantee Fund: +358 20 793 4295
Website of the Deposit Guarantee Fund:
www.talletussuojarahasto.fi
Press release 20 May 2010
Press release 19 April 2010
Press release 29 March 2010
____________________________________________________________________________________________
Contact information
Phone +358 20 793 4295, fax +358 20 793 4202
Address:
The Deposit Guarantee Fund
c/o Federation of Finnish Financial Services
Bulevardi 28
FI-00120 Helsinki
