Financial Stability Authority to collect EUR 127 million to deposit guarantee fund for 2019
The Financial Stability Authority collects a total of EUR 127 million as deposit guarantee contributions and entry contributions for a new bank in 2019. The contributions will accumulate in the Deposit Guarantee Fund, whose purpose is to secure the claims of the depositors of deposit banks. In accordance with legislation, the Fund must be accumulated by 2024 to cover 0.8% of the total amount of covered deposits held by deposit banks operating in Finland.
The target level for the Deposit Guarantee Fund in 2024 is approximately EUR 1.03 billion, taking into account the impacts of Nordea's redomiciliation to Finland in October 2018. As a new bank in the deposit guarantee scheme, Nordea will pay its statutory entry contribution during the following years, amounting to 0.8% of the amount of its covered deposits. The Fund will be accumulated to its target level by 2024 by collecting annual deposit guarantee contributions and entry contributions from institutions.
In autumn 2018, in accordance with the Deposit Guarantee Directive, the Swedish deposit guarantee authority transferred to the Finnish Deposit Guarantee Fund the contributions collected from Nordea during the 12 months preceding the bank's redomiciliation. At present, the capital of the Deposit Guarantee Fund amounts to EUR 274 million. After the collection of the contributions for 2019, the capital will increase to approximately EUR 401 million.
For further information, please contact Riku Thilman, Economist (email@example.com)