In 1961, the exiting guarantee arrangements for savings banks were merged. The rules on the new Savings Banks’ Guarantee Fund were included in the Savings Banks Act, and in 1970 the guarantee fund was given statutory responsibility to cover losses that depositors could suffer in the event of the reconstruction or liquidation of a member bank. In reality, the latter already was in effect, as the fund originally had as a statutory purpose, among other things, to cover losses that a creditor could incur at a member bank.
In 1957, the Private Joint-Stock Banks' Guarantee Fund had changed its name to the Norwegian Commercial Banks' Guarantee Fund. Mandatory membership was introduced by the Commercial Banks Act of 1961 and the fund changed its name once more, to the Commercial Banks' Guarantee Fund.
While the Savings Banks’ Guarantee Fund should cover losses on deposits in savings banks, the Commercial Banks' Guarantee Fund could cover losses on deposits in commercial banks. There was no coverage limit for the schemes. In addition to covering losses on deposits in the event of the liquidation of a bank, the guarantee funds could also provide financial support to a failing bank.