Deposit Insurance
International cooperation

For the sake of exchange of experience, knowledge and achievements with the countries in the region, and accross Europe and the world, the Deposit Insurance Agency (of Serbia) became a member of the EFDI – European Forum of Deposit Insurers and the IADI – International Association of Deposit Insurers. The Agency actively participates in those international organizations and is liaised with representatives of the relevant bodies of other countries.

EFDI – European Forum of Deposit Insurers

The Agency is an EFDI member since November 2004 and has been contributing to the activities of that organisation by taking part in its annual meetings, conferences and workshops, as well as through exchange of opinions and experience with other members.

EFDI was founded on 11 October 2002 in Vienna with a view to contributing the stability of financial systems by promoting cooperation of the European countries in the field of deposit insurance. The countries – founders of the EFDI were: Austria, Belgium, Bosnia and Herzegowina, Bulgaria, Croatia, the Czech Republic, Denmark, France, Germany, Greece, Hungaria, Iceland, Ireland, Italy, Lithuania, Luxembourg, Malta, the Netherlands, Norway, Poland, Portugal, Slovakia, Spain, Sweden and Great Britain.

EFDI has currently 66 members from 44 European countries, and the membership in EFDI is open to all deposit insurers, organizations responsible for depositor protection, deposit insurance funds ar any other organization that operates under the corresponding EU Directive.
The objective of the EFDI is to contribute to the stability of financial systems through promotion of cooperation of European countries in the field of deposit insurance, and facilitate exchange of experience and information on issues of common interest and importance, both for its members and the countries that are not its members yet, third parties and the public.

International Association of Deposit Insurers (IADI)

The Agency became a member of the International Association of Deposit Insurers (IADI) in February 2011.

IADI was founded on 6 May 2002 in Basel with a view to enhancing deposit insurance systems through international cooperation and introduction of guidance. The IADI members create useful guidelines through research and exchange of knowledge, to be used by those countries that intend to introduce and/or upgrade their deposit insurance systems. IADI currently has 77 members from 80 countries, but its members are also representatives of the World Bank (WB), International Monetary Fund (IMF) and European Commission.

IADI priorities are :

  • Boosting of mutual understanding and the actions regarding issues of common interest;
  • Contribution to the effectiveness of deposit insurance systems, taking into account the country-specific circumstances;
  • Exchange of experience and information on deposit insurance through trainings, development and educational programs, and advisory in establishment and development of efficient deposit insurance systems;
  • Research related to deposit insurance.

The legal framework governing structure and functioning of deposit insurance systems/depopsit guarantee schemes (DGS) in the European Union is presented in the EU Directive 2014/49 of the European Parliament and of the Council on deposit insurance systems/deposit guarantee schemes of 16 April 2014, which is a reference for review of compliance of the Serbian deposit insurance system. For the purpose of gradual harmonization of the Serbian DGS with the legal framework of the European Union and principles contained in the said directive, the new Deposit Insurance Law was enacted in 2015 („RS Official Gazette“ 14/2015).

The EU Directive 2014/49 is a tool for creation and strengthening of the financial institutions market, upgrading of the banking system stability and depositor protection.

The EU Directive 2014/49 on deposit guarantee schemes entails:

  • Existence of deposit insurance systems/deposit guarantee schemes since every EU country needs to take care of it;
  • Harmonized level of protection that entails that the coverage level in all EU member countries must stand at EUR 100,000 per depositor per bank;
  • Faster access to insured deposits since the deadline for beginning of depositor reimbursement after a failure will gradually be reduced from the current 20 to 7 weekdays in three stages:
  • - 15 weekdays – from 2019;
    - 10 weekdays – from 2021;
    - 7 weekdays – from 2024.
  • The target size/level of the Deposit Insurance Fund (DIF) is determined at 0.8% of insured deposits and it is necessary that the available resources in all deposit insurance systems in Europe reach that level by 3 July 2024.;
  • Risk-based (differential) premiums, i.e. introduction of the model of assessment and collection of the premiums which is based on measuring of risks of every individual bank;
  • Including in the deposit insurance system/deposit guarantee scheme of business entities which are large legal entities by their legal status (except for financial institutions, insurance companies, pension funds and state bodies, as well as of local bodies);
  • Achievement of the better public awareness means that the bank clients should be provided with the most important information on depositor protection by deposit insurance systems/guarantee schemes when depositing their funds with banks.