Over time, the banks have contributed to the deposit guarantee fund. Today, the fund is more than NOK 20 billion and the Financial Institutions Act requires that the banks each year contribute to the fund. The fund is invested in international and Norwegian bonds with very low risk and high liquidity.
Should there be a need for more financial means, the Norwegian Banks’ Guarantee Fund has the right to borrow further and has the option of calling in extraordinary contributions from the banks.
In the event of a payout, the Norwegian Banks’ Guarantee Fund will have a claim on the bank, and there may still be significant values left in the bank. This claim must be met before the claims of all other unsecured lenders and the bank's shareholders. This means that the Norwegian Banks’ Guarantee Fund will recover all or large parts of the outlay - and can thus fill up the deposit guarantee fund again.
Even if we have good coverage for our claim, it may take time to liquidate the bank. However, the Norwegian Banks’ Guarantee Fund can receive full or partial coverage as soon as the estate has the funds to pay. This will reduce the time needed for recovery, as it did after the payout of the guaranteed deposits of Optin Bank ASA in 2021.
If the consequence of liquidating the bank is too great, the authorities will instead be able to choose to carry out what is termed resolution of the bank. In such a situation, guaranteed deposits will be available to the depositors as usual and without a payout by the Norwegian Banks’ Guarantee Fund.