Deposit insurance Turkey



Deposit insurance in Turkey is handled by Savings Deposit Fund Insurance (Tasarruf Mevduatı Sigorta Fonu) and covers a maximum of 50,000 TL



TMSF, the Savings Deposit Insurance Fund of Turkey is the governing body concerned with matters on fund management and insurance in the Turkish Banking System.





Deposit insurance system is the most advanced association among those established up to now for the protection of deposits. The system works between deposit owners, banks accepting the deposits and the institutions taking the deposits under insurance guarantee. It takes its sanction power from rule of law based on country’s legislation. The association providing insurance collect specific premium against this transaction. The Association steps in through the resolutions written in the related legislation when the bank in which deposits are invested can not repay the owner’s deposit. It pays the total amount under the insurance to the depositor/s. In order to take back the totals it paid, It initiates the legal process about the bank having difficulty in paying.

The first legal arrangement related to the protection of savings deposits was Deposits Protection Law Nr. 2243 dated May 30, 1933. According to this Law, the deposits which the banks have as reserve requirement in the CBRT are accepted as a provision of savings deposit accounts opened in the banks in question and it is provisioned that they are exempted from seizure by third parties. Afterwards, the amount corresponding to 40% of the deposit that the depositors have in banks is accepted as privileged claim over all the securities existing in the assets of the bank accepted the deposit in question and it is provisioned through the Banks Act Nr. 2999 dated June 01, 1936 amending the Act Nr. 2243 that, in case of bankruptcy it is to be paid to depositors without waiting for the result of the liquidation. This ratio was increased to 50% with the Banks Act Nr. 7129 dated June 23, 1958. A significant amendment was made in the Banks Act Nr. 7129 by the Act Nr. 153 dated 1960 and a “Banks Liquidation Fund” was founded through accepting the gradual liquidation principle in banks. The Savings Deposit Insurance Fund had been founded with the Decree of Law On Banks Nr. 70 dated July 22, 1983, which annulled the Act Nr. 7129. The task of administrating and representing the Fund was given to CBRT with the regulation prepared by the Ministry. Arrangements of the said Decree of Law regarding the SDIF were legalized with the Banks Act Nr. 3182 dated April 25, 1985. With the Decree of Law Nr. 538 dated June 16, 1994 the Fund was charged in strengthening and the restructuring the financial structure of the banks when necessary besides insuring savings deposits. Banks Act Nr. 4389 dated June 18, 1999 provisions that the Fund is to be administrated and represented by the Banking Regulation and Supervision Agency. BRSA, is established on the date June 23, 1999 with the status of a public legal entity with administrative and financial autonomy, is established in order to ensure application of the said Act and other relevant acts, and to supervise and conclude such application, and to ensure that savings are protected and to carry out other activities and to exercise its authority defined in Banks Act by also issuing regulations within limits of authority granted by the Act in accordance with the article 3/1 of Banks Act Nr. 4389 and initiate to operate on August 31, 2000.

In conclusion, the administration and the representation of the Fund having legal entity as of 1983 was firstly enforced by CBRT and than by BRSA. It was provisioned with the Act Nr. 5020 on “Making Amendments to the Banks Act and Some Acts” on December 26, 2003, that the decision-making body of the Fund is the Fund Board and general directorate and representation, implementation of the resolutions taken by the Fund Board is the duty of the chairman of the Fund.






Also see: List of Banks in Turkey


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