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Hungary: No reason to raise deposit insurance limit

  There is no reason to raise the Ft 6 million limit on deposits insured by the National Deposit Insurance Fund (OBA), which is supported through regular payments by banks, Hungarian Bank Association chief secretary Rezső Nyers told MTI on Monday.


Hungarian banks’ capital position is stable, and their capital adequacy ratios and other indicators are fine, Nyers said. The Ft 6 million (about €24135) limit is well over the EU’s recommended limit of €20,000, and about 90% of Hungarian retail deposits are under Ft 6 million, he added.

OBA pays on claims 100% of deposits up to Ft 1 million, then 90% over Ft 1 million up to a total of Ft 6 million.

Finance Minister János Veres on Monday said the government could propose raising OBA’s insured deposit limit, but the cabinet does not consider it necessary. OBA managing director Péter Szekács said the insurer’s coverage ratio of 1.19% was adequate. OBA paid out Ft 5.29 billion on claims in 2007. It had Ft 63.1 billion in assets. (MTI-Econews)