Deposit insurance system
On the 2nd of December, 2004 “EVROPEISKIY” ICB got certification ¹ 260 about entry into the register of banks-participants of obligatory deposit insurance system of State corporation «Deposit Insurance Agency»
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Monetary funds, invested by depositors in «EVROPEISKIY» ICB according to contracts of bank deposit, running accounts, running accounts of bank card must be insured in accordance with the Federal Law "On the Insurance of Household Deposits in Banks of the Russian Federation" dated 23.12.2003., N 177-FZ from the moment of entry of bank to the obligatory deposit insurance system.
The creating of obligatory bank deposit insurance is a special state programme, realized in accordance with the Federal Law "On the Insurance of Household Deposits in Banks of the Russian Federation " dated 23.12.2003ã. N 177-FZ. Its main task is the protection of people’s savings, placed into deposits and accounts in Russian banks in the Russian Federation. The protection of people’s financial interests is one of the important social goals in many countries of the world. System of deposit insurance is obligatory in all countries of European Community. It works in the USA, Japan, Brazil, Ukraine, Kazakhstan and Armenia.
System of insurance deposits works in the following way. If a bank, joined deposit insurance system, quits its activity and bank license is withdrew, fixed payments are carried out to its depositors without delay. For deposit insurance depositor doesn’t need enter into an agreement: it is performed by Law. Especially founded State organization – Deposit Insurance Agency – returns to depositor the basic amount of his savings instead of bank, keeps the place of depositor in the queue of creditors and then has out with the bank about the return of debts. According with the Federal law «On the Insurance of Household Deposits in Banks of the Russian Federation» the depositors shall get a 100% reimbursement of their aggregate deposits in a bank in which the insured occurred but not more than 700,000 rubles. The amount of compensation may not be more over 700,000 rub, even more depositor keeps his money in one bank on the different accounts. However if he has deposits in different banks, equal payments are guaranteed to him at each bank. All monetary funds of natural persons in banks must be insured, with the exception of:
- Means of natural persons-business owners without formation of juridical person;
- “to bearer” deposit;
- means handed over to the banks in trust managing;
- deposits in branches of Russian banks, being abroad.
For receiving of deposit compensation repayment depositor should show application and identified documents to the Deposit Insurance Agency (or its authorized bank-agent). You may do it at any time under insurance event up to completion of bankruptcy proceedings in the bank, which has been lasting, as a rule, up to 2 years. Claims of "latecomers" will be effected in exceptional cases, for example, due to serious illness, long business trip.
Deposit compensation repayment is made by Agency according to register of bank duties towards depositors formed by bank under insurance event within 3 days from submitting by depositor respective documents to Agency, but no sooner than 14 days after insurance event date (this period is necessary for receiving information about deposits and accounts from the bank). Deposit compensation repayment is made within 3 days after agreement of depositor on bank's obligation amount based on additionally submitted documents.
Participation in the system of insurance is obligatory for all banks, having the right to work with private deposits. Deposits are considered insured since the day of entry bank into register of banks – participants of a system. Financial base of a system is a fund of obligatory deposit insurance. The main resources of fund formation are:
- initial property installment of the Russian Federation of 2 billion rubles;
- bank insurance premium and penalty fee for its belated payment.
- income from investment of fund’s means.
Insurance premium the same for all banks are paid each quarter. The rate of insurance premium is established by the Agency committee of directors, it must not be over 0,15 percents of average value of deposit per a quarter. In case of deficit of a fund the rate of insurance premium can be increased up to 0,3 percents. Means of insurance deposit fund can be invested:
- into government securities of the Russian Federation;
- into deposits and securities of Bank of Russia;
- into government securities of regions of the Russian Federation, bonds and shares of Russian issuers and Russian mortgage securities;
- into interests (shares, äîëè) of index investment funds, investing monetary funds into government securities of foreign state, bonds and shares of other foreign issuers;
- into securities of economically developed countries.
To secure the financial stability of insurance deposit system the government of Russia is authorized to allocate funds of federal budget to Agency in case of lack of means of insurance deposit fund.
For more information, read at the web-site: www.asv.org.ru.
