In connection with the liquidation of the DRB Banking Group the National Deposit Insurance Fund (NDIF) will pay compensation to over 73,000 depositors, in the amount of nearly HUF 103 billion in the first round. Out of the 64,000 private individual depositors 22,558 (customers with less than HUF 100,000 in deposits) will receive their compensation through the Hungarian Post from today on. At the same time, the posting of notices to the other private individuals and 10,000 legal entities has also started. By the fifth working day of the compensation procedure NDIF has processed the data of 99.5% of the affected depositors, and has transferred them to the paying agents (Hungarian Post, OTP Bank and savings cooperatives).
In the first round of the indemnification process, which started on 4 March, NDIF will pay a total compensation of HUF 103 billion to 73,573 customers of the DRB Banking Group, i.e. BRB BUDA Regionális Bank, DRB Dél-Dunántúli Regionális Bank, Dél-Dunántúli Takarék Bank and ÉRB Észak-magyarországi Regionális Bank.
Based on the processing of the databases, deposits equalling nearly HUF 5.5 billion require further actions and investigation (e.g. in the case of child welfare agency deposits deposits, Start accounts, deposits of deceased depositors). As much as 87% of those affected are private individuals with an average deposit of HUF 707,000.
“Compensation of the depositors of the DRB Banking Group has been the largest challenge for NDIF so far, because it affects the largest number of customers that need to be compensated simultaneously. Working with our partners we are making all efforts to transfer the depositors’ money to the paying agents, and to allow them to withdraw their savings before the legal deadline of 20 working days,” Managing Director of NDIF András Fekete-Győr said.
Deposits over the indemnification limit that cannot be repaid by NDIF total HUF 12.9 billion across the Banking Group.
BRB BUDA Regionális Bank
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Total insured deposit stock of BRB BUDA Regionális Bank (interest+principal): |
HUF 23 billion |
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Payouts (interest+principal) started on 10 March up to the HUF equivalent (HUF 30,461,000) of EUR 100,000 (including frozen deposits, items to be investigated and items under HUF 500 that cannot be paid out): |
HUF 19 billion |
Number of insured depositors eligible for indemnification: 16,533
Including:
- Private individuals: 14,265
- Businesses, social organisations (ltds, limited partnerships, associations, self-employed people, churches, etc.): 2,243
- Communities with shared property: 25
The number of depositors at BRB BUDA Regionális Bank Bank whose deposits exceed the indemnification limit of HUF 30,461,000 is 43.
DRB Dél-Dunántúli Regionális Bank
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Total insured deposit stock of DRB Dél-Dunántúli Regionális Bank (interest+principal): |
25 billion |
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Payouts (interest+principal) started on 10 March up to the HUF equivalent (HUF 30,461,000) of EUR 100,000 (including frozen deposits, items to be investigated and items under HUF 500 that cannot be paid out): |
22 billion |
Number of insured depositors eligible for indemnification: 13,591
Including:
- Private individuals: 12,038
- Businesses, social organisations (ltds, limited partnerships, associations, self-employed people, churches, etc.): 1,395
- Communities with shared property: 158
The number of depositors at Dél-Dunántúli Regionális Bank whose deposits exceed the indemnification limit of HUF 30,461,000 is 66.
Dél-Dunántúli Takarék Bank
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Total insured deposit stock of Dél-Dunántúli Takarék Bank (interest+principal): |
HUF 28 billion |
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Payouts (interest+principal) started on 10 March up to the HUF equivalent (HUF 30,461,000) of EUR 100,000 (including frozen deposits, items to be investigated and items under HUF 500 that cannot be paid out): |
HUF 23 billion |
Number of insured depositors eligible for indemnification: 19,402
Including:
- Private individuals: 17,720
- Businesses, social organisations (ltds, limited partnerships, associations, self-employed people, churches, etc.): 1,644
- Communities with shared property: 38
The number of depositors at Dél-Dunántúli Takarék Bank whose deposits exceed the indemnification limit of HUF 30,461,000 is 53.
ÉRB Észak-magyarországi Regionális Bank
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Total insured deposit stock of ÉRB Észak-magyarországi Regionális Bank (interest+principal): |
HUF 45 billion |
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Payouts (interest+principal) started on 10 March up to the HUF equivalent (HUF 30,461,000) of EUR 100,000 (including frozen deposits, items to be investigated and items under HUF 500 that cannot be paid out): |
HUF 40 billion |
Number of insured depositors eligible for indemnification: 24,047
Including:
- Private individuals: 19,977
- Businesses, social organisations (ltds, limited partnerships, associations, self-employed people, churches, etc.): 3,950
- Communities with shared property: 120
The number of depositors at ÉRB Észak-magyarországi Regionális Bank whose deposits exceed the indemnification limit of HUF 30,461,000 is 105.
At the members of the DRB Banking Group private individuals are compensated in four different ways:
· between HUF 500 and HUF 100,000 the amount of compensation will be delivered in cash to the depositors’ homes by the postal delivery person.
· between HUF 100,000 and HUF 2.5 million the postal delivery person will deliver the depositors a notice specifying the post office in which they can withdraw their money.
· between HUF 2.5 million and HUF 5 million the amount of compensation can be received using an NDIF Deposit Insurance Card. The card, the letter containing the relevant PIN code and the payment report will be sent to the depositor’s permanent address in separate letters. Customers can use the card to withdraw the amount they are entitled to at any OTP Bank cash machine (the daily limit is maximum HUF 800,000) or in a lump sum in an OTP branch or at a post office.
· over HUF 5 million customers can make arrangements (deposits, transfers, cash withdrawal) about the amounts they are entitled to in the savings bank branch specified in the letter sent by NDIF.
Independent of the amounts concerned, legal entities, other organisations and private entrepreneurs can receive the amounts of indemnification they are entitled to after receiving the payment report sent by post, in the savings bank branch specified in the payment report.
NDIF will indemnify neither the executive officers of the DRB Banking Group nor their next of kin living in the same household.