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. The banking group had branches in nearly all counties: the banks subjected to the liquidation proceeding had branches in Budapest as well as in 13 counties. The largest group of customers live in Somogy county, who are also eligible for the highest compensation, nearly HUF 25 billion in total. Regarding the number of customers living in cities, Pécs, Budapest and Kaposvár are on top of the list.
NDIF started to pay out compensations to the depositors 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 on 10 March 2015. The process is expected to be completed by 31 March 2015.
There are altogether 73,573 affected depositors, including 64,000 private individuals. Within this group 52,238 persons’ deposits are below HUF 2.5 million. They will receive their compensation through the Hungarian Post within one week.
“The compensation of the customers of the DRB Banking Group is unprecedented not only in terms of customer number and payment obligation, but also because if affects a major area of Hungary, since the banks that have been subjected to liquidation had branches in Budapest as well as in 13 counties. NDIF’s payment obligation is the largest in Somogy county, where nearly HUF 25 billion has been paid out as compensation in the past few days. Due to the extraordinary amounts in question NDIF asks depositors to take extra precautions when withdrawing cash,” István Tóth, the Communication Manager of NDIF announced.
The number of customers with deposits exceeding the compensation limit of NDIF (i.e. HUF 30,461,000) is 267. Their deposits total HUF 17 billion.
Most customers with deposits exceeding this compensation limit live in Baranya county and Budapest (51 depositors in each location), while none of the depositors living in Komárom-Esztergom, Tolna and Zala counties had savings above this limit.
The largest amount that cannot be repaid to a private individual is HUF 750 million.
The largest amount that cannot be repaid to a legal entity is HUF 2.8 billion.
Apart from Hungarian citizens, the compensation process affects the citizens of another 28 countries (Australia, Austria, Azerbaijan, Belgium, Canada, China, Croatia, Denmark, Estonia, Finland, France, Germany, Ghana, Iran, Italy, Lithuania, Luxemburg, Macedonia, Morocco, the Netherlands, Romania, Serbia, Slovakia Spain, Sweden, Switzerland, Ukraine and the USA).
On average, deposits are the largest in Budapest, where the average deposit size is HUF 5 million. The least affected area is Nógrád county, where NDIF has to compensate altogether 42 private individuals and 9 enterprises or social organisations.
Indemnification figures pertaining to counties affected by the branches of the DRB Banking Group shown in the order of NDIF’s payment obligations
|
|
Total payment obligation (HUF) |
Number of customers to be compensated |
Number of private individuals |
Number of legal entities |
Average deposit size (HUF) |
|
Somogy county |
24,691,206,592 |
21,968 |
20,224 |
1,744 |
1,123,962 |
|
Baranya county |
20,192,160,851 |
14,133 |
12,842 |
1,138 |
1,446,810 |
|
Borsod-Abaúj- Zemplén county |
11,955,173,367 |
9,568 |
7,968 |
1,599 |
1,249,496 |
|
Pest county |
9,890,043,172 |
10,662 |
9,244 |
1,418 |
1,000,904 |
|
Fejér county |
6,733,718,560 |
6,107 |
5,635 |
472 |
1,134,183 |
|
Budapest |
6,179,552,490 |
3,402 |
2,305 |
1,097 |
5,083,303 |
|
Heves county |
5,856,465,568 |
4,932 |
4,316 |
616 |
1,296,795 |
|
Hajdú-Bihar county |
3,210,219,158 |
9,877 |
8,496 |
1,381 |
2,335,101 |
|
Szabolcs-Szatmár-Bereg county |
1,557,745,788 |
593 |
490 |
103 |
2,626,890 |
|
Bács-Kiskun county |
374,231,548 |
97 |
71 |
26 |
3,858,511 |
|
Komárom-Esztergom county |
220,808,050 |
155 |
145 |
10 |
1,434,385 |
|
Nógrád county |
133,400,648 |
51 |
42 |
9 |
2,615,700 |
|
Tolna county |
127,407,490 |
170 |
144 |
26 |
749,456 |
|
Zala county |
70,916,617 |
93 |
86 |
7 |
781,526 |
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.