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 fund
All deposit banks have to belong to the Deposit Guarantee Fund (Talletussuojarahasto; Insättningsgarantifonden).
Guarantee 100,000 euros
Depositors’ deposits and interest are compensated from the Deposit Guarantee Fund to a maximum of 100,000 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 one month 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. Funds received from the sale of a residence in one’s own use are fully compensated during the six months following insolvency, provided that the funds are meant to 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 100,000 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 mere right to use an account does not qualify for compensation. 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.
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22.12.2010 Finnish deposit guarantee will be adjusted to meet a
harmonized EU level of € 100,000. The amendment will enter into force on 31
December 2010.
Press release 28 June 2010
Press release 20 May 2010
Press release 19 April 2010
Press release 29 March 2010
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Contact information
Phone +358 20 793 4214
E-mail: talletussuojarahasto(at)fkl.fi
Address:
The Deposit Guarantee Fund
Bulevardi 28
FI-00120 Helsinki, Finland
