The deposit guarantee fund shall secure the customers' guaranteed deposits in the banks.
Who will have to pay contributions?
Members of the deposit guarantee scheme shall pay annual contributions to the deposit guarantee fund.
All Norwegian banks are members of the deposit guarantee scheme. Foreign banks in Norway are covered by the deposit guarantee scheme in the bank's home country. As the Norwegian guarantee has a higher coverage level, a number of branches of foreign banks have chosen to become members of the Norwegian scheme as well.
How much is to be paid in total annual contributions?
The total annual contributions to the deposit guarantee fund is set at 0.8 per thousand of total guaranteed deposits at the member banks, according to the Financial Institutions Act
How much shall each bank pay in annual contributions?
The total annual contribution is distributed among the member banks. The basis for the banks' annual contribution to the deposit guarantee fund is their share of guaranteed deposits, as well as a risk adjustment based on selected key financial figures. The risk adjustment shall measure the guarantee liability that the bank imposes on the deposit guarantee scheme. The key financial figures are weighted and put together to form a total risk weight for the member bank. The following categories of key figures are included in the risk adjustment: Capital adequacy, liquidity and financing, credit risk, business model and loss potential for the deposit guarantee scheme. Due to the given total contribution amount, there is a mutual dependency between the banks. A possible change in a key figure for one bank may affect the size of the contribution for the other member banks as well.
Branches of foreign banks pay a contribution equivalent to 0.8 per thousand of the amount that exceeds the home country's guarantee amount, without any form of risk adjustment.
The calculation method is explained in the Model documentation (in Norwegian only).
The calculation method follows guidelines from the European Banking Authority (EBA). The guidelines from the EBA allow adaptations according to national conditions. The risk profile of Norwegian banks is considered to vary to such an extent that an extended interval for risk weights from 25 per cent to 300 per cent is used. This means that the contribution for two banks with the same amount of guaranteed deposits, but at opposite ends of the risk scale, may vary by up to twelve times.
The Norwegian Banks' Guarantee Fund uses the web portal Sikringsportalen for all communication with the banks about payment of contributions. Under the menu Support in Sikringsportalen, we have published the templates for calculating contributions to the deposit guarantee fund for 2019–2022. By using these templates, each bank can recalculate its own contributions and calculate the effect on its own contribution by changing the input data.
What is the minimum size of the deposit guarantee fund?
The deposit guarantee fund shall constitute at least 0.8 per cent of total guaranteed deposits. As of 31 December 2022, the deposit guarantee fund had liquid assets that corresponded to 1.31 per cent of guaranteed deposits. If the size of the deposit guarantee fund should fall below two thirds of the minimum requirement, annual fund contributions can be set higher than 0.8 per thousand.
If the deposit guarantee fund does not meet the minimum requirement of 0.8 per cent of total guaranteed deposits, the lacking amount shall be covered by a guarantee from the members. Each member bank's guarantee liability shall be limited to a maximum of 0.5 per cent of guaranteed deposits of the member bank. The member banks may also be charged an additional contribution of up to 0.5 per cent of guaranteed deposits to cover the reimbursement of guaranteed deposits.