Bilateral Agreement Between the Slovakian and the Hungarian Deposit Insurance Schemes

20 November, 2013 In order to have single rules for handling potential cross border bank failures and reimbursing depositors, Deposit Protection Fund of Slovakia and the National Deposit Insurance Fund of Hungary today signed a mutual claims handling bilateral agreement. Aim of the cooperation that contains harmonization of technical details during an eventual payout is to serve mutual interest of the two countries in maintainaining financial stability and enhancement of public confidence in the financial system in line with objectives of EU Directive on Deposit Guarantee Systems. Having deep understanding on the diverse national legal environments and also with regard to creating mutual institutional ability that grounds fast and effective… Read More

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EFDI CRWG in Budapest

Crises Resolution Working Group of the European Forum of Deposit Insurers (EFDI) held a one-day of workshop at the NDIF’s office in Budapest on October 4. Themes of the working group was the Role of DGSs Within the Institutional Framework for Banks Resolution; The Borrowings and Mutualization Between Schemes and Funds as well as DGSs’ Contribution to Resolution Funding. The working goup was led by Thierry Dissaux, President of the French Deposit Insurance and Resolution Fund.

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Average deposit size slightly diminishes

  As revealed by the data posted by credit institutions in their premium returns for 2013, the domestic deposit portfolio slightly decreased by the beginning of the current year (from HUF 17,371 billion to HUF 17,366 billion)as opposed to the 4.4 percent growth seen early last year. Concurrently, the average deposit size per depositor also shrank nearly 1 percent to HUF 1,262,000.In the wake of the continuous rise seen in the past years, last year was the first time that NDIF’s indemnification obligation decreased by3.5 percent to HUF 8,753 billion. The full article can be downloaded here.

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THE LAST LAWSUIT OF REALBANK COMPLETED

Finally completed the last case is of litigations brought by shareholders and bond owners of Realbank agains NDIF 15 years ago. Winning rate of NDIF is 100 percent regarded Realbank what shows that NDIF and its all previous operational decisions are full comply with the legal requirements while reimbursing depositors. NDIF defended assets that insure depositors against unauthorized payment demands.

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Market boost strengthening depositor protection

As a result of the previous fruitful year seen on the government security market, the assets of NDIF available for indemnification increased to HUF 76.6 billion by the end of 2012. The Fund’s HUF 86.8billion portfolio of one year earlier was reduced by HUF 33 billion paid out to the depositors of liquidated ‘Soltvadkert’ Savings Co-operative Bank; however, the HUF 23.5 billionannual revenue generated last year considerably compensated for this shrinkage of assets. NDIF’s retained earnings amounted to HUF 3 billion, i.e. three times the figure seen in 2011. The full article can be downloaded here. View NDIF’s Annual Report 2012.

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French visit in Budapest

Delegation of the Fonds de Garantie des Depots (FGD) took a two-days of working visit at OBA. Group of the delegation was led by Thierry Dissaux President of FGD who spoke about the visit and the current challenges FGD has recently.   1, The crisis has not spared only to the CEE region but also the Western part of the EU. Despite this fact we have not heard news about any bank closures in France. Are the French financial authorities so efficient and effective in the crisis management and prevention, or the banks are so stables? Yes, despite the turbulences and with the exception of Dexia, a Belgian-French bank, the… Read More

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