The first day of the new year will bring many changes to the Norwegians. Two of them will be related to the deposit guarantee scheme. Has the changes had a strong impact on customers?
Deposit Guarantee System
Its primary purpose is to protect credit institutions. It guarantees their solvency and financial liquidity, which is important for everyone. The system aims to avoid situations in which deposits placed with the above-mentioned credit institutions would become undisposable. In the European Union, the directive European Parliament and Council 2009/14/w introduced a fixed level of deposit guarantee, which currently amounts to EUR 100.
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2 million kronor for each depositor
The bank's hedge fund aims to secure deposits in as many as 135 banks in Norway, where they want to allocate a maximum of 2 million kronor to each depositor. This solution will be helpful when the bank has a problem with meeting its obligations towards its client. The Storting decided that the rules of operation the deposit guarantee scheme should be changed on January 1, 2019
2 million or 100 euro guarantee?
Currently, in Norway, for each bank customer, according to deposit guarantee scheme, the amount is 2 million crowns. However, this amount may be reduced in the near future. Discussions on this topic are currently ongoing and no final decision has been made. Until the matter is clarified, the amount remains unchanged changes and in Norway, and throughout the EU. However, the talks are still ongoing and the amount may be reduced to as much as EUR 100.
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Foreign clients in a Norwegian bank
These are the most important changes coming to bank customers Norwegians from outside Norway:
- In exceptional situations, the customer may receive a higher guarantee amount than it results from the current regulations, where it is a maximum of 2 million. They will be dbank deposits resulting from special life events that have been deposited in the last 12 months and will then be covered for an unlimited amount. An example of such a special event in life may be the sale of an apartment or breach of contract terms.
Some Norwegian banks, such as Instabank, MonoBank and BN, operate abroad within the EU / EEA, which is known as cross-border activity. This means that banking operations abroad are carried out by an organization in Norway. The amount of the guarantee that the customers are entitled to. Banks in foreign operations currently stand at two million. On January 1, 2019, there may be a change in reducing this amount to EUR 100.
The latter change, which concerns the reduction of the amount, will be a big plus for banks operating in the same markets. Namely, they will be forced to offer the same amount of guarantee, regardless of how the bank operates on the foreign market and where it derives its income.
