Deposit insurance fund pays record compensation in 2014

Budapest (MTI) – Hungary’s National Deposit Insurance Fund (OBA) paid compensation of 123 billion forints (EUR 392m) in 2014, a new record, the fund’s communications director told MTI.

A total of six credit institutions — the Alba, Orgovany, Kormend, Szechenyi Istvan and Tisza savings cooperatives as well as Szechenyi Commercial Bank — went bust this year, said Istvan Toth.

The payouts to depositors reduced the fund’s assets from 100 billion forints at the beginning of the year to around 10 billion forints at year-end. But bank dues and yields raised the assets by more than 22 billion during the course of the year, and more than 12 billion in compensation was refunded to OBA by Takarekbank on the basis of legislation integrating the country’s savings cooperatives.

OBA has raised its dues rate from 0.1 percent to 0.14 percent for 2015, which should bring 12-15 billion forints into the fund.

Source: http://mtva.hu/hu/hungary-matters