Information on Deposit Protection
Information on Deposit Protection
The Deposit Protection Fund (the “DPF”) was established by the Act of the National Council of the Slovak Republic no. 118/1996 Coll. on Deposit Protection and on Amendments to Certain Laws, as amended (the “Deposit Protection Act” or “the Act”).
Headquarters of the DPF:
Kapitulská ul. č.12
812 47 Bratislava
phone: (+421 2) 5443 5444, 5443 2570
fax: (+421 2) 5443 4335
The main task of the DPF is by law
- to concentrate the monetary contributions of banks and branches of foreign banks, to provide compensation for deposits deposited with banks and branches of foreign banks
- to deal with them in accordance with the law, in particular to provide compensation for inaccessible deposits in banks and branches of foreign banks in the scope and under the conditions laid down by the Deposit Protection Act and the General Terms and Conditions for the payment of compensations for legally protected inaccessible bank deposits
VÚB Bank is a participant in the Deposit Protection System in the Slovak Republic. The DPF is a fund that forms the institutional part of the legal Deposit Protection System in the Slovak Republic while ensuring the implementation of activities, rights and obligations associated with this Deposit Protection System; the Ministry of Finance of the Slovak Republic shall inform the European Commission and the National Bank of Slovakia shall inform the European Supervisory Authority without delay of this fact. At the same time, the DPF concentrates bank funds to provide compensation for deposits placed in banks when they become inaccessible. The DPF regulates the details of the procedure for exercising the right to reimbursement and the method for demonstrating the right to compensation in the General Conditions of Compensation.
In general, all retail depositors and businesses are covered by a deposit protection scheme. Protected by the law are not:
- bearer’s deposits, balance of the bearer’s cancelled deposit, in particular a deposit confirmed by a bearer’s passbook, bearer’s deposit ticket or bearer’s treasury note
- a deposit that, according to records made by a bank or a branch of a foreign bank in its information system or in depositor’s deposit relationship document before the day when deposits became legally unavailable, is not kept for the depositor at least in the scope of the depositor’s data, which are
- name, surname, ID or date of birth and the address of the depositor’s permanent residence if the depositor is a natural person
- name, identification number, if assigned, and address of the depositor’s seat if the depositor is a legal person whose deposits are protected by this law as well as the sign of the official register or other official register in which that legal entity is registered and the number of entry into that register or record
- a deposit that is a financial instrument if Section 28bf para. 2 of the Act does not stipulate otherwise
- a deposit whose principal is not payable in nominal value
- a deposit whose principal is payable at a nominal value only on the basis of a specific guarantee or provided that the agreement is fulfilled by the bank, a foreign bank branch or a third party
- a deposit of the bank or branch of a foreign bank executed in its own name and on its own account, including a deposit which is the bank's own source of financing
- a deposit acquired as a result of an activity for which the offender has been legally convicted of a money laundering offence
- a deposit of a financial institution
- a deposit of a securities trader
- a deposit of insurance and reinsurance companies
- a deposit of a collective investment undertaking
- a deposit of the pension fund management company, including the assets in the pension fund
- a deposit of the supplementary pension fund company, including the assets in the supplementary pension fund
- a deposit of a public authority
- a deposit in the form of a debt security issued by the bank or in the form of an own bill or check
Protected deposits, under the Deposit Protection Act, are considered to be deposits:
- on personalized passbooks,
- on current accounts,
- on deposit accounts with notice period,
- on term deposit accounts,
- in the form of non-negotiable deposit certificates/personalized certificates of deposit,
- notarial safekeeping, if the beneficiary of such safekeeping is or ought to be a person, whose deposits are protected.
For an unavailable deposit in a bank by law, the depositor has the right to compensation from the DPF to the extent stipulated by law.
Amount of compensation for unavailable deposit
All deposits of one depositor are "counted" and the total amount is covered by a cover level of € 100,000. For the purposes of calculating the amount of compensation for inaccessible deposits, all legally protected unavailable deposits of the same depositor, including its shares in joint deposits and notarial deeds protected by law, shall be calculated on the basis of the date on which the deposits became inaccessible under the Deposit Protection Act. This means that all depositor’s deposits are counted to determine the cover level. If a depositor, for example, has a deposit account of € 90,000 and a current account of € 20,000, a refund of only € 100,000 will be paid.
For each joint deposit, each depositor has the same share if the other depositor’s shares do not prove to be reliable. Interest and other property benefits associated with an unavailable deposit shall be calculated for the purposes of calculating the amount of the refund according to the date on which deposits became inaccessible under the Deposit Protection Act and will be added to the depositor’s inaccessible deposit. The amount of inaccessible deposit thus determined will be reduced for the purposes of calculating the compensation for all liabilities of the depositor vis-à-vis the bank as of the date on which the deposits became inaccessible under the Deposit Protection Act; later changes to this status are disregarded. The calculated amount of compensation is rounded up to the full euro cents.
In some cases, deposits are protected in excess of € 100,000 - for a period of 12 months from the date on which the deposit was first credited or from the moment at which the deposit became legally transferable, if such a deposit is demonstrably derived from the transfer or transfer of a property for housing, is associated with social purposes and was acquired as part of an inheritance proceeding or was made out of the funds of the inheritance proceeding or transfer of inheritance, from transfer of dowry, donation at marriage, transfer of unpaid co-ownership of spouses, payment of severance, retirement or other pension, payment of another performance pursuant to the Act of the National Council of the Slovak Republic no. 43/2004 Coll. on retirement savings and on amendments to certain laws, as amended, or as a result of death, or has been set up by means of indemnity or compensation for damage caused by a criminal offence or a false accusation.
These facts shall be communicated by the depositor to the bank upon assignment or immediately after the deposit amount has been credited to the bank. You can find further information at www.fovsr.sk.
The amount of compensation for a foreign currency deposit shall be calculated in Euro at the reference exchange rate determined and declared by the European Central Bank or by the National Bank of Slovakia, which shall be valid on the day on which the deposits become inaccessible.
Repayment must be terminated:
- From 15 October 2015 to 31 December 2018, within 20 business days
- From 1 January 2019 to 31 December 2020 within 15 business days
- From 1 January 2021 to 31 December 2023 within 10 business days
- From 31 December 2023 within 7 business days
The DPF may postpone the payment of compensation in statutory terms. If compensation has not been paid within these time limits, you should contact the DPF as, after a certain period of time, the time limit for claiming a refund may be waived. You can find further information at www.fovsr.sk.
The DPF during the transition period from 15 October 2015 to 31 December 2023 will ensure that depositors have paid at least part of the compensation within at least five working days of filing the claim for part of the compensation at least to the amount of the average monthly nominal wage of the employee in the national economy of the Slovak Republic ascertained by the Statistical Office of the Slovak Republic for the relevant calendar quarter.
For more detailed information on deposit protection and the DPF, visit the DPF website at www.fovsr.com. You can find the general terms and conditions for the payment of compensation for legally protected inaccessible bank deposits here or on the fund page.