Norwegian banks established abroad

Banks’ business may run across national borders, either as a cross-border activity from the home state or through establishment of a branch in the host state. Cross-border activity means that the banking business abroad is operated from the organization in Norway, while a branch involves the establishment of a branch office and employees. Examples of branches are DNB and Santander in Sweden and Denmark. Examples of banks with cross-border activities are Instabank, BRAbank and Komplett Bank in several Nordic countries.

Deposits are covered by the guarantee scheme regardless of the nationality and residence of the depositors. The coverage depends on whether the deposit is made in the Norwegian or foreign part of the business.

Coverage level

Deposits in Norwegian banks’ activities abroad are covered by the guarantee with an amount in NOK corresponding to EUR 100,000 per depositor per member bank.

Deposits resulting from certain life events are covered in full up to 12 months. Life events that result from the deposit being covered in full are:

  • Sale of residential or leisure property
  • Marriage, divorce, termination of employment (incl. pension/downsizing), disability, death
  • Insurance payments, such as from accident insurance or life insurance

Such deposits are guaranteed with an unlimited amount for a period of up to 12 months, provided there is documentation that these deposits are made after a life event as mentioned above.

Transitional rule for fixed interest rate deposits established before 1.1.19

The coverage level for customers in the foreign part of cross-border activities was NOK 2 million until January 1, 2019. Some Norwegian banks with cross-border activities have offered fixed-rate deposits. Fixed interest rate deposits made before 1.1.19 in these banks will be guaranteed by up to NOK 2 million until the expiration of the fixed interest rate period.