Stronger protection for depositors as of 1 July

Press release 27 May 2016

Sweden’s parliament has decided on changes to the Deposit Insurance Act that will strengthen the protection for depositors. The changes include setting the compensation level at 950 000 kronor instead of 100 000 euros. Also, it will be possible to receive higher compensation for certain temporary deposits.

– Strengthening the deposit insurance scheme benefits both consumers and the financial system. Backed by strong consumer protection, depositors can feel secure even in times of financial turbulence, reinforcing the preconditions for financial stability, says Hans Lindblad, Director General at the Swedish National Debt Office.

The changes to the Deposit Insurance Act follow a revised EU directive aimed at harmonising and strengthening the protection for depositors. The changes include:

  • setting the compensation amount for depositors in Sweden to 950 000 kronor instead of 100 000 euros
  • setting the compensation amount for depositors in branches of Swedish institutions in other EES countries at the same amount as in the country where the branch operates
  • allowing compensation of up to 5 million kronor for certain temporary high balances connected to for example real estate transactions
  • reducing the time for compensation payments from 20 to 7 working days
  • clarifying the information provided to customers.

For the banks and other financial institutions covered by the deposit insurance scheme the primary change is the introduction of a more risk-based contribution method.

The changes to the Act will take effect on 1 July 2016.

The deposit insurance scheme was introduced in Sweden in 1996 pursuant to an EU directive. The insurance means that depositors receive compensation from the government if an institution goes bankrupt or due to a decision by Finansinspektionen (the Swedish Financial Supervisory Authority). It also applies when the government handles a failing institution according to the new rules for managing banking crises.

The Debt Office is the authority responsible for the deposit insurance scheme in Sweden. The scheme is financed through contributions paid by the covered institutions.

More information on the Swedish deposit insurance scheme


Linda Wik, public relations officer, +46 (0)8 613 46 18