Press release

26 September 2014

Due to the liquidation of ALBA Cooperative Savings Bank the National Deposit Insurance Fund (NDIF) has to pay nearly HUF 12 billion in indemnities to 13,183 customers. Pursuant to the Act on cooperative credit institutions, 40 percent of deposit portions above the EUR 100,000 threshold will be paid by Takarékbank to the affected depositors in the assigned savings bank branches. The indemnification of the 12,000 individual depositors and nearly 1,000 legal entities will start next week.

NDIF will pay a total of HUF 11.9 billion to 13,183 depositors of ALBA Cooperative Savings Bank (hereinafter: the Savings Bank) in indemnities. The indemnification of 97% of the depositors registered in the database has been processed without any problem. It can be stated that as many as 92% of the depositors are private individuals, and the average size of deposits kept in the Savings Bank equalled HUF 0.9 million. Payouts to the depositors will start next week.

“We have been working hard with our paying agents, the Hungarian Post and Takarékbank in order to be able to indemnify our customers as soon as possible, preferably before the legally set deadline of 20 working days. Our goal is to ensure for most depositors to have their deposits kept in ALBA Cooperative Savings Bank in hand at the beginning of the next week ,” managing director of NDIF András Fekete-Győr said.

The depositors of the Savings Bank are indemnified in three ways:

· up to HUF 100,000 the Hungarian Post will deliver the amount of indemnification to the depositor’s address.

· between HUF 100,000 and HUF 2.5 million the postal delivery person will deliver the depositor a notification which will specify the post office where he/she can receive the amount of indemnification he/she is eligible for.

· over HUF 2.5 million NDIF will send the depositor (private individuals and all legal entities) a letter specifying the cooperative savings bank branch where the customer can make arrangements regarding the amount of indemnification he/she is eligible for.

Payouts approved on 25 September 2014 and broken down by the payout methods (for both private individuals and legal entities):

Number of customers

Amount (HUF thousand)

Up to HUF 2.5 million (through the Hungarian Post)



Over HUF 2.5 million (through Takarékbank, in savings bank branches)






NDIF will not indemnify the deposits of the Savings Bank’s senior officials and the next-of-kin members of their households.

Further key figures of indemnification by NDIF

Total insured deposit stock of the Savings Bank (interest+principal):

HUF 11.878 billion

including the indemnification obligation of NDIF (for interest+principal) up to the HUF equivalent of EUR 100,000 (HUF 31,396,000) (including frozen deposits, items to be investigated and items under HUF 500 that cannot be paid out):

HUF 11.869 billion

Number of insured depositors eligible for indemnification: 13,183


§ Private individuals: 12,178

§ Businesses, social organisations (ltds, limited partnerships, associations, self-employed people, churches, etc.): 986

§ Communities with shared property: 19

The oldest depositor to be indemnified was born in 1912, while the youngest is six months old.

Deposits under HUF 500 are not indemnified by NDIF. There are 935 such deposits (with a total value of HUF 215,285).

The number of depositors whose deposits exceed the indemnification limit of HUF 31,396,000 is 3 (with deposits totalling HUF 9 million).

Apart from Hungarian citizens, 28 citizens of another 8 countries (Austria, United Kingdom, Ukraine, Slovakia, Romania, Germany, Mongolia and the USA) are affected by the indemnification process, claiming a total of HUF 14 million.


Pursuant to the legal regulations in force, NDIF will deduct the tax payable on interest income due to private individuals as well as the flat-rate healthcare contribution, and will forward the total of approximately HUF 9 million to the tax authority.

Information supply

Information on indemnification by NDIF is available from NDIF’s customer service by calling the 06-40-918-918 blue number for local tariffs. The number is operational 24 hours a day during the entire indemnification process.

Further payouts – deposits of more than EUR 100,000 and uninsured deposits – pursuant to the Act on cooperative credit institutions (Szhitv.)

In the case of deposits insured by NDIF, the portions above the EUR 100,000 (HUF 31,896,000) limit will also be indemnified pursuant to the provisions of Szhitv up to 40% of the total deposit claims of a customer.  In the case of deposits not protected by NDIF the payout will equal 40% of the total deposit claim. These payments are covered from the deposits kept in the Savings Bank, and still covered by liquid assets. Magyar Takarékszövetkezeti Bank Zrt. (Takarékbank) will draw up a detailed payment report on every amount paid, and will send the report to the depositor’s home address (registered address in the case of companies) kept by the Savings Bank in a letter delivered by “return receipt requested” delivery.

Indemnities will be paid out in the assigned savings bank branches. Similarly to NDIF, Takarékbank will deduct the interest tax and flat-rate healthcare contribution payable on interests due to private individuals, and will forward it to the tax authority.

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To the editor


Bank deposits placed in credit institutions in the territory of the EU are insured by the national deposit insurance institution of the country of incorporation. Since 1993, all credit institutions (banks, savings cooperatives, credit unions, building societies) holding an operating licence in Hungary have been mandated to join NDIF and pay accession and annual fees. The key responsibility of NDIF, which supports the stability of the Hungarian banking system, is to indemnify depositors from its accumulated funds in the case of frozen deposits. See the current rules of deposit insurance on the homepage of NDIF:

NDIF indemnification

In case of the liquidation/dissolution of a credit institution the eligible depositors are indemnified by NDIF within 20 working days, aggregately by private individuals and credit institutions for up to EUR 100,000. The indemnity, which is always paid in HUF, pertains both to the principal and interest amounts of the frozen deposits. Brief information on the process of indemnification is available on the homepage of NDIF (


Act CCXXXVII of 2013 on Credit Institutions and Financial Enterprises, which regulates the operation of NDIF.

Paying agent bank

NDIF has concluded master agreements with several credit institutions with official seats and extensive branch networks in Hungary to act as paying agents. This means that in case of mass payments the paying agent contributes/paying agents contribute to the process of indemnification through their payment function. Clients can withdraw the amounts reserved for their use in the paying agent bank in cash, place the amounts as deposits or other savings products in the same bank, or may transfer these amounts to a bank account they have opened in a Hungarian credit institution. Clients must definitely visit a branch office of the paying agent.

NDIF consumer protection logo

The banking products insured by NDIF are easy to recognise due to the deposit insurance consumer protection logo the use of which has been mandatory since 1 March 2012. The use of the logo is regularly checked by NDIF during its credit institution audits, and it is also monitored by the Hungarian Financial Supervisory Authority:

NDIF member institutions

As of 31 December 2013, NDIF had 157 member institutions, including 4 building societies, 4 credit unions, 34 banks and 115 savings associations.