Budapest, April 7 (MTI) – The National Bank of Hungary (NBH) on Tuesday proposed amendments to raise the insured threshold of the Investor Protection Fund (Beva) from 20,000 to 100,000 euros.
The amendments would also accelerate the process of Beva’s compensation to match that of the National Deposit Insurance Fund (OBA), the central bank said.
The NBH noted that the 20,000 euro threshold is a minimum set by a European Union directive, but added that the directive does not exclude the use of national regulations that would provide investors with bigger or broader coverage.
The NBH also proposed merging OBA with Beva with the aim of “using the advantages gained from a unified organisational and management structure”.
Responding to MTI’s query, the central bank said that compensation amounts should ensure return on investment, increased protection for investors, and stability of the financial system in cases like the recent brokerage scandals.
Higher compensation levels may mean higher payments for the fund members, the central bank said, but added that the extra burden on market players could not be imposed with immediate effect.