Norway proposed a formal law to strengthen the capital backing its depositor guarantee fund by setting an annual fee for banks.
“It’s important for banks to contribute capital to the guarantee fund every year so the fund can grow and improve its ability to handle crises in larger individual banks or problems affecting several banks simultaneously,” Finance Minister Sigbjoern Johnsen said in an e-mailed statement today.
The measure was first announced in May. The fund’s capital needs to be 1.5 percent of all deposits at member banks and 0.5 percent of the amount used to calculate capital requirements, the ministry said. The banks’ fee would be set at 0.001 percent of deposits and 0.0005 percent of the capital requirement amount. No fee will be charged in the years when the fund exceeds the minimum amount.
Capital in the fund stood at 22.7 billion kroner at the end of last year. Norway guarantees bank deposits as high as 2 million kroner per account.
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