National deposit guarantee schemes have been harmonised in key respects by EU legislation. A deposit guarantee scheme is a statutory system protecting deposits and maintained by the deposit bank's home country. Deposits within the scope of the scheme are covered regardless of the depositor's country of residence or nationality.
The deposit bank’s permanent establishment determines the country whose deposit guarantee scheme the bank falls within. As regards a foreign deposit bank operating in several countries, the responsibilities and duties of each national deposit guarantee scheme are determined based on whether the foreign deposit bank had a subsidiary or branch in the country, or whether it operated on a cross-border basis without a permanent establishment.
1. Foreign banks’ subsidiaries operating in Finland on a cross-border basis fall within the scope of Finland's deposit guarantee. A foreign deposit bank’s subsidiary operating in Finland is considered a Finnish deposit bank for the purposes of deposit guarantee.
2. Branches of foreign banks operating in Finland are covered by the deposit guarantee of their home country. Where a foreign bank has a branch in Finland, the Financial Stability Authority pays deposit guarantee compensations to the depositors of the branch on behalf of the deposit guarantee scheme of the deposit bank’s home country. In this case, a branch refers to a permanent establishment of a bank from another EEA country located in Finland, from which the bank pursues its business activities in Finland.
3. Foreign banks providing deposit services in Finland on a cross-border basis are covered by the deposit guarantee of their home country. Deposit guarantee compensations are paid by the home country of the deposit bank. In this case, the Financial Stability Authority is not involved in the payment of the compensations, since the bank does not have a permanent establishment in Finland.
We maintain a list of deposit guarantee schemes applicable to banks operating in Finland. You can check the home country and deposit guarantee scheme applicable to your deposit bank on the list.