Financial Stability Authority to collect EUR 105 million to the Deposit Guarantee Fund for 2020
The Financial Stability Authority collects a total of EUR 105 million as deposit guarantee contributions and entry contributions for a new bank in 2020.
The deposit guarantee contributions accumulate to the Deposit Guarantee Fund, whose purpose is to secure the claims of deposit banks’ depositors. The target level of the Deposit Guarantee Fund is 0.8% of the total amount of covered deposits held by deposit banks operating in Finland. As calculated based on the amount of covered deposits at the end of 2019, this corresponds to approximately EUR 1.07 billion (the target level based on the amount of covered deposits at end-2018 was EUR 1.03 billion). At the end of 2019, covered deposits totalled approximately EUR 134 billion (approximately EUR 129 billion at end-2018). The amount of covered deposits has grown in 2019, as a result of which the fund’s target level has risen and the amount of deposit guarantee contributions to be collected to the fund has also increased somewhat.
At present, the Deposit Guarantee Fund amounts to approximately EUR 546 million. After the contributions for 2020 have been collected, the fund will amount to approximately EUR 651 million. The Deposit Guarantee Fund will be accumulated to its target level by 2024 through the collection of annual deposit guarantee contributions and entry contributions from institutions. By 2024, Nordea will pay its entry contribution, which amounts to 0.8% of its covered deposits. The deposit guarantee contributions of the other deposit banks operating in Finland are determined based on a risk-based calculation.
For further information, please contact Erika Aunio, Resolution Expert ([email protected])