Banks’ administration to be decreased

With regard to a concurrent launch of the mandatory consumer protection logo as of 1 March 2012, the Board of Directors of the NDIF cancels the requirement for member institutions to keep a mandatory Deposit Registry, as well as the related requirement for member institutions to supply data to the Hungarian Financial Supervisory Authority (HFSA).

In the continuation, customers can make sure whether an individual banking product is insured by checking the consumer protection logo on the banking information brochure related to the product in question.

The “Deposit and savings product selection programme” accessible on the HFSA’s home page provides information on material data of all deposit products available on the market; it is worth knowing, however, that it excludes information on NDIF insurance on individual deposits.

The NDIF launched the deposit registry back in 1998 when there was still a facility to deposit funds anonymously (without depositor identification), and depositors were assisted in finding their way among insured deposits by the Deposit Registry. The HFSA launched its deposit selection programme on its home page last year, and as of 1 March in the current year, credit institutions are required to use the deposit insurance consumer protection logo–both means of consumer protection are intended to inform depositors.

In the wake of these two changes, as well as the fact that compensation of customers in the event of a bank closure is carried out by the NDIF based on the credit institution’s current opening hours, the Board of Directors, accepting the NDIF’s proposal, reduced the administrative duties of member institutions through terminating the Deposit Registry.