The Ministry for National Economy has submitted to the Parliament a new regulatory package on deposit insurance. Thanks to the proposal, Hungary will join the uniform European Deposit Guarantee Scheme.

The draft package of amendments to deposit insurance regulation lays down new rules with regard to information to be provided by credit institutions concerning deposit insurance; it modifies the types of deposits covered by the deposit insurance scheme and regulations on the financing of Hungary’s National Deposit Insurance Fund (OBA). Thanks to the amendment, in case of credit institution insolvency depositors will receive their deposits from the OBA within a much shorter period than before.

Through the regulatory package the State of Hungary fulfils an EU requirement. In April 2014, a new EU directive on deposit insurance schemes was adopted in Brussels. The objective of the directive is to provide uniform protection for depositors within the entire European Union. Member states have until 3 July 2015 to transpose the majority of these provisions into national regulation.

The bill is expected to be adopted by the National Assembly in December and to enter into effect as of 1 January 2015. These provisions on deposit insurance will be then applicable as of 3 July 2015.

(Ministry for National Economy)