Notice to clients of UNIBON – savings and credit cooperative: the Deposit Insurance Fund will commence the disbursement of deposit compensation on 23/7/2012 via selected branches of GE Money Bank
Prague, 11 July 2012 – On Monday 23/7/2012 the Deposit Insurance Fund will commence, via seven selected branches of GE Money Bank in the Czech Republic and a single branch of Všeobecná úverová banka in Slovakia, the disbursement of insured deposits to clients of the bankrupt UNIBON savings and credit cooperative. The Deposit Insurance Fund will disburse 100 per cent of the deposits to entitled persons, however up to a maximum limit of CZK 2 551 500 per depositor (the equivalent of EUR 100 000 using the exchange rate CZK 25.515 / EUR). The total amount of the reimbursements could reach CZK 1.8 billion. The Deposit Insurance Fund currently has around CZK 24 billion available for such cases.
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The Deposit Insurance Fund in Brief
- The Deposit Insurance Fund (DIF) was established pursuant to Act No. 156/1994 Coll., amending and supplementing Act No. 21/1992 Coll., on Banks, as amended, supplementing Act No. 513/1991 Coll., the Commercial Code, as amended, and Act No. 328/1991 Coll., on Bankruptcy and Composition, as amended.
- By law, deposits with banks, building societies, and cooperative savings banks are insured
- The deposits of both natural persons and legal entities, i.e., individuals and companies, are insured, both in Czech crowns and foreign currencies, and including interest
- Deposits kept at the branches of foreign banks are not insured through the DIF. Deposits with those branches are insured in the deposit insurance system in the country in which the parent bank is based.
The main role of the Deposit Insurance Fund is to protect bank deposits and enhance trust in the banking system in a time of economic turbulence.
Since its establishment, the Deposit Insurance Fund has paid compensation for insured deposits to some 300,000 clients, amounting to more than 25 billion crowns. The payments concerned the clients of the 12 banks that went bankrupt between 1995 and 2003.
Currently, the Deposit Insurance Fund guarantees deposits in the volume of CZK 2.1 trillion, deposited with 36 insured financial institutions, which paid contributions to the Fund amounting in total to CZK 1.914 billion crowns last year.