FFSA has signed a bilateral cooperation agreement with the Lithuanian deposit guarantee scheme concerning the deposit guarantee compensation to depositors in the case of a payout process of a branch of a credit institution.
To make the payment of deposit guarantee compensation to depositors as quick and easy as possible, the deposit guarantee scheme in the country the branch is located in pays deposit guarantee compensation on behalf of the deposit guarantee scheme of the bank’s home country.
In these cases, the deposit guarantee scheme in the bank’s home country makes the decisions concerning deposit guarantee compensation and funds the compensation. The deposit guarantee scheme in the country the branch is located in only carries out the reimbursement of the compensation.
With this bilateral cooperation agreement practical specifications regarding the deposit guarantee compensation have been agreed upon between the deposit guarantee schemes of Finland and Lithuania.
The Agreement is an addition to the European Forum of Deposit Insurers, EFDI, Cooperation agreement on deposit guarantee schemes, which is based upon the EBA Guidelines on cooperation agreements between deposit guarantee schemes.
More information: Fanni Teinilä, FFSA, email: fanni.teinila(at)rahoitusvakausvirasto.fi
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