Hungarian Deposit Guarantee Scheme

Information Leaflet – A Deposit Guarantee Scheme Reimburses a Limited Amount to Compensate Account Holders Whose Bank in Hungary Has Failed


Hungarian Deposit Guarantee Scheme: Credit institutions domiciled and licensed in Hungary are required to join the National Deposit Insurance Fund (“OBA”). The fund protects depositors of its members. OBA compensates registered and insured depositors when the operating license of their credit institution is withdrawn or it is ordered to wind up. Protection applies to registered bank deposits held at banks domiciled in Hungary (or located in their foreign branches).

Secured Deposit Limit: OBA provides automatic compensation to registered and eligible depositors of up to EUR 100,000 per person and credit institution within 10 working days. Compensation is paid in Hungarian Forint (HUF) irrespective of the currency on the account of the claimant.

Additional Insured Coverage: Compensation may be raised with an additional EUR 50,000 for natural persons and specific bank accounts only. Creditors must substantiate their claim for increased compensation.

Claim Filing Procedure: The firs step is that the court orders the liquidation of a credit institution, or the Central Bank of Hungary (MNB) revokes the operating license of a credit institution. OBA informs the general public about the details of compensation payment. Customer data is shared with the OBA by the failed financial institution. Claimants complete a ‘compensation sheet’ and instruct the OBA to transfer their insured deposit amount to another Hungarian bank account held by the claimant. Upon approval, payment is made in the most reasonable and fastest way. This may be via an OBA deposit insurance card, bank transfer, or through a paying agent.

Claim Submission Timeframe: Starting from the day preceding the day the compensation procedure starts, creditors have 5 years time to complete the procedure.

Repayment Timeframe: OBA does not require account holders to submit a formal application for repayment. However, following the outreach to eligible creditors, a response to the OBA is required for claim verification purposes. Payment to registered and eligible depositors

Repayment Conditions: Only registered deposits whose owner is and can be identified are protected by the Hungarian Deposit Insurance Fund. Authorized representatives and proxy holders are not entitled to DGS compensation. After claim approval reimbursement is made within 10 business days exclusively to the account holder, preferably to a bank account in Hungary.

DGS Claim Rejections: Registered bank deposits are covered by the fund. Deposits outside this scope are excluded. Rejected claims and deposits may be reinspected upon the submission of documented evidence. As a final resort, dissatisfied claimants may take their case to court for independent evaluation.

Scheme Architecture: Licensed credit institutions have the exclusive right to take deposits. Membership of the deposit insurance system is mandatory for such credit institutions. Financial contributions in the form of prepaid membership fees and periodic premiums fund the scheme to ensure swift repayment to registered account holders when their credit institution fails. The reserves of the fund are currently estimated at 80 Billion HUF.

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