Information on deposit guarantee scheme for depositors | NKBM

A deposit is the total balance of all claims a depositor has on the bank arising from any credit balance, which results from funds left in an account or from temporary balances deriving from normal banking transactions and which a bank is required to repay under applicable legal and contractual conditions, transaction account management contract, including a savings deposit, a cash deposit, a certificate of deposit and a bank bill, if issued as a registered security.

A deposit does not include claims that have any of the following characteristics:

• arising from financial instruments, as defined in the act governing the market in financial instruments, other than a savings product, which is evidenced by a certificate of deposit made out to the bearer and exists as at 2 July 2014;
• principal not repayable at par value;
• principal is only repayable at par value under a particular surety, guarantee or agreement provided by the bank or a third party;
• regarded as debt securities issued by the bank or arising out of own acceptances and bank bills of exchange;
• may be used solely for repayment of the depositor's obligations to the bank based on an agreement or regulation; or
• may be considered in the calculation of a bank's capital under Regulation (EU) No. 575/2013 owing to their features.

The deposit guarantee scheme does not cover deposits of the following depositors:

1. deposits in bearer form, including deposits for which the bank has not obtained the requisite information for the identification of the end beneficiaries by the guarantee calculation cut-off date;
2. deposits made by banks and investment firms and other financial institutions made on their behalf and for their account;
3. deposits made by insurance undertakings, reinsurance undertakings and insurance holding companies;
4. deposits made by collective investment undertakings, including investment undertakings of the closed-end type;
5. deposits made by pension funds and pension companies;
6. deposits made by national authorities and central banks and deposits by entities that are direct or indirect users of the state budget;
7. deposits made by local communities and deposits by direct and indirect users of the budgets of local communities.

A guaranteed deposit is an eligible deposit up to the amount of this deposit as at the guarantee calculation cut-off date, including all interest accrued up to that date, but not exceeding EUR 100,000.

In addition to the coverage referred to in the preceding paragraph, a depositor's claims on the bank in excess of EUR 100,000 arising from credit balances that are a direct result of the following shall be covered by the deposit guarantee scheme as well:

1. the purchase or sale of residential real estate, including the subsidy for young family first-time home seekers under the law governing the National Housing Saving Scheme;
2. pay-outs from social insurance, health insurance or life insurance in accordance with the regulations governing social insurance, health insurance or life insurance;
3. disability benefit payments in accordance with the regulations governing disability insurance or the regulations governing the care of persons with mental or physical disabilities;
4. compensations for damages suffered due to criminal offences;
5. cash assistance to individuals for natural and other disasters in accordance with regulations other than cash assistance paid in relation to business;
6. compensation for wrongful conviction and detainment in accordance with the law governing criminal procedure, cash compensation for non-pecuniary damage paid in accordance with the law governing the protection of the right to a trial without undue delay, and compensation for victims of crime in accordance with the law governing compensation granted to crime victims, with the exception of compensation for the loss of earnings;
7. pay-outs from property insurance for damage to personal property;
8. payments of solidarity benefits and similar assistance in the event of death, alimonies based on a court ruling or alimony agreement concluded in accordance with regulations, and alimony compensation paid in accordance with the law;
9. severance pay upon retirement or termination of employment contract due to redundancy.

The additional coverage referred to in the preceding indents is guaranteed by the deposit guarantee scheme for six months, triggered by the date on which a depositor acquired a claim against a bank. A depositor that makes a claim for repayment of a guaranteed deposit on these grounds in an amount exceeding EUR 100,000 shall make this claim separately and shall submit to the deposit guarantee scheme an explanation and evidence, if any, justifying the reasons referred to in the preceding paragraph

In case of funds in a trust account, the share belonging to a particular beneficiary shall be taken into account as part of the deposit of that beneficiary, if information for the identification of that beneficiary has been submitted to the bank. If information on the beneficiaries of the funds in a trust account has not been provided to the bank, the trust account shall be treated as a bearer deposit.

The funds in a trust account which, by law or other regulation, are at the disposal of a particular person acting as a representative or manager for the account of a community, which has been established by law or regulation and does not have legal personality shall be deemed to be the claim of the community up to EUR 100,000.

The calculation of the amount of the guaranteed deposit to be repaid to a depositor shall not take into account the depositor's liabilities to the bank, except where the depositor's liabilities to the bank fall due payment before or on the guarantee calculation cut-off date, and may be offset against the depositor’s claim for the repayment of the guaranteed deposit in accordance with applicable agreements or regulations that apply to the bank.