Frequently Asked Questions

1.

What is the Savings Deposit and Participation Fund Insurance?

 

The deposit and participation fund insurance is a guarantee for losses to be incurred by the deposit and participation holders being paid partially or wholly by the government or an institution established for this purpose in the event that operating licenses of the deposit and participation banks (credit institutions) authorized to collect deposit and participation fund are revoked by the Banking Regulation and Supervision Agency. Authority and duty to insure the deposit and participation funds in Turkey are entrusted to the Savings Deposit Insurance Fund (SDIF/FUND),which is a public entity.

2.

Which banks in Turkey are subject to the deposit and participation fund insurance system?

 

The deposit and participation funds available in the branches of the domestic and foreign credit institutions, which carry on business in Turkey, are competent for acceptance of deposit and participation fund, and the credit institutions, which head offices are located abroad, are subject to the insurance systems.

3.

Who pays the insurance premiums related to the savings deposit and participation fund?

 

The insurance premiums related to the savings deposit and participation fund are paid by the respective credit institutions to the SDIF.

4.

Are all deposit and participation funds subject to the insurance coverage?

 

Proportion up to TRY 100 thousand (TRY One hundred thousand) of ; the capital of the savings deposit accounts, and total of interest rediscounts; unit account values of the participation accounts and the private current accounts in Turkish Lira, foreign currency and precious metal, which are opened on behalf of real persons in the domestic branches of a credit institution carrying on business in Turkey, and are not subject to business transaction apart from exclusively drawing check is in the insurance coverage.

5.

Are deposits or participation funds of the persons, who live abroad, subject to the insurance coverage?

 

Capital of the savings deposit accounts opened by local or foreign real persons, who live abroad, in the domestic branches and total of the interest rediscounts related to these accounts, unit account values of the participation fund and private current accounts are subject to the insurance coverage up to TRY 100 thousand.

6.

Are deposit, participation or private current accounts opened in the foreign branches of the credit institutions subject to the insurance coverage? 

 

Deposit, participation or private current accounts opened in the foreign branches of the credit institutions are not subject to the insurance coverage.

7.

Are commercial accounts subject to the insurance coverage?

 

Accounts related to the commercial transactions opened on behalf of real or legal persons are not subject to the insurance coverage.

8.

Are accounts opened in the credit institutions carrying on off-shore banking business subject to the insurance coverage?

 

Accounts opened in the credit institutions carrying on off-shore banking business are not subject to the insurance coverage.

9.

Can the credit institutions, which carry on business in Turkey and are competent for acceptance of the deposit and participation fund, and their partnerships established abroad accept the deposit or participation fund from the persons residing in Turkey on behalf of other banks or financial institutions?

 

It is not allowed that the credit institutions, which carry on business in Turkey and are competent for acceptance of the deposit and participation fund, and their partnerships established abroad accept the deposit or participation fund from the persons residing in Turkey on behalf of other banks or financial institutions, maintain document or bank book, employ personnel, direct their customers to the aforesaid institutions by means of advertising these institutions, accept the deposit and participation funds on behalf of the institutions established abroad by means of this and similar methods.

10.

Which other accounts are not subject to the deposit and participation fund insurance?

 

In accordance with the article 5 of the “Regulation on the Insured Deposit and Participation Funds and Premiums to be Collected by the Savings Deposit Insurance Fund” published in the Official Gazette No. 26339 of 11.07.2006 in line with the third sub-clause of the article 63 of the Banking Law No. 5411;

 

Deposits, participation funds and other accounts of main shareholders of the relevant credit institution and similar type of accounts that belong to said individuals’ mothers, fathers, spouses and children under their custody.

Deposits, participation funds and other accounts of the chairman or members of the board, general manager and assistant general managers of the relevant credit institution and similar types of accounts that belong to their mothers, fathers, spouses and children under their custody.

Deposits and participation funds generated through crimes enumerated in article 282 of the Turkish Criminal Law number 5237, dated September 26, 2004.

Deposits and participation funds in the credit institutions that were established exclusively to implement offshore banking activities in Turkey. Are not subject to the insurance coverage.

11.

Are investment instruments such as government bond, treasury stock, investment fund, which are sold through the credit institutions, subject to the insurance coverage?

 

The investment instruments such as government bond, treasury stock, investment fund, which are sold through the credit institutions, are not subject to the insurance coverage of the SDIF.

12.

Are deposit, participation or private current accounts in the credit institutions established in the free zones subject to the insurance coverage?

 

Due to banking transactions in the free zones being in the scope of the Banking Law No. 5411, accounts of the credit institutions in the branches located in free zones are also subject to the insurance coverage.

13.

Is a payment related to the deposit/participation fund in a credit institution of which activities are carried out under management of the SDIF made in the scope of insurance?

 

In accordance with the sixth sub-clause of the article 63 of the Law No. 5411, the SDIF pays only the insured proportion of the deposit and participation fund which accuracy is proven without any doubt and is in the credit institutions with a revoked operating license.

14.

Are the savings deposit accounts and participation accounts opened on behalf of the persons, who have not reached maturity yet (under 18 years old), subject to the insurance coverage?

 

Also, these accounts are subject to the insurance coverage. In the event that parantel guardian or custodian have other deposit or participation account belonging to him/her in the same credit institution, account of the parental guardian or custodian is also subject to the insurance coverage. The one under age and parental guardian benefit separately from the deposit assurance amount.

15.

How is the insurance amount calculated in the event that a natural entity has an account in more than one deposit bank?

 

Accounts of a natural entity which are in more than one deposit bank are calculated separately for each bank. In other words, proportion up to TRY 100 thousand of capital of these accounts and interest rediscounts related to these accounts is separately in the scope of the insurance coverage for each bank.

  

Deposit Bank A

Insured Proportion

Deposit Bank B

Insured Proportion

Total Insured Deposit

 Mete30.000 TL30.000 TL110.000 TL100.000 TL130.000 TL
 Hilal55.000 TL55.000 TL80.000 TL80.000 TL135.000 TL
 Hakan120.000 TL100.000 TL150.000 TL100.000 TL200.000 TL

16.

How is the insurance amount calculated in the event that a real person has an account in more than one participation bank?

 

Accounts of a real person which are in more than one deposit bank are calculated separately for each bank. In other words, proportion up to TRY 100 thousand of unit account values of the participation accounts and the private current accounts is separately in the scope of the insurance coverage for each bank.

  

Participation Bank A

Insured Proportion

Participation Bank B

Insured Proportion

Total Insured Participation Fund

 Razan40.000 TL40.000 TL110.000 TL100.000 TL140.000 TL
 Sanem70.000 TL70.000 TL85.000 TL85.000 TL155.000 TL
 Yasemin120.000 TL100.000 TL150.000 TL100.000 TL200.000 TL

17.

How is the insurance amount calculated in the event that a real person has more than one account in a deposit bank?

 

In the event that a real person has more than one deposit account in a deposit bank or its different branches, proportion up to TRY 100 thousand of the total deposit accounts belonging to the respective person is subject to the insurance coverage.

  

Adana Branch of Deposit Bank A

Rize Branch of Deposit Bank A

Kars Branch of Deposit Bank A

Total Deposit Sum in Deposit Bank A

Insured Deposit Sum in Deposit Bank A

 Gamze25.000 TL15.000 TL17.500 TL57.500 TL57.500 TL
 Bülent20.000 TL100.000 TL12.000 TL132.000 TL100.000 TL

18.

How is the insurance amount calculated in the event that a real person has more than one account in a participation bank?

 

In the event that a real person has more than one participation or current account in a participation bank or its different branches, proportion up to TRY 100 thousand of the total  participation or current accounts belonging to the respective person is subject to the insurance coverage.

  

Adana Branch of Participation Bank A (Unit Account Value of Participation Account)

Taksim Branch of Participation Bank A (Private Current Account)

Malatya Branch of Participation Bank A (Unit Account Value of Participation Account)

Participation Account Unit Value and Private Current Account Sum in Participation Bank A

Insured Participation Account Unit Value and Private Current Account Sum in Participation Bank A

 Özlem35.000 TL10.000 TL25.000 TL70.000 TL70.000 TL
 Oya20.000 TL10.000 TL75.000 TL105.000 TL100.000 TL

19.

How is the insurance amount calculated in the event that a real person has an account in both participation and deposit bank?

 

The insurance sum related to accounts of a real person in both participation and deposit bank is separately calculated for each credit institution; in other words, proportion up to TRY 100 thousand of capital of deposit accounts and the total of interest rediscounts related to these accounts, the unit account value of the participation accounts and their private current accounts is separately subject to the insurance coverage.

  

Deposit Bank A

Insured Proportion

Participation Bank B

Insured Proportion

Total Insured Sum

 Ayla25.000 TL25.000 TL30.000 TL30.000 TL55.000 TL
 Atilla175.000 TL100.000 TL110.000 TL100.000 TL200.000 TL

20.

How do the partners in joint account benefit from the insurance system?

 

The insurance coverage of the partners in joint account is separately calculated for each partner. In the event that shares of partners in joint account are not specified, it is deemed each account owner to have equal share.

  

Participation Bank A (Joint Account)

Insured Proportion

Participation Bank B (Joint Account)

Insured Proportion

 
 Yusuf220.000 TL100.000 TL90.000 YTL45.000 TL 
 Resul100.000 TL45.000 TL 

 

In the event that partners in joint account have other separate accounts in the same bank, proportion up to TRY 100 thousand of the sum in joint account and total amounts in other accounts will be subject to the insurance coverage.

  Participation Bank A (Joint Account)

Deposit Bank A (Second Deposit Account)

*Sum of Accounts

Insured Proportion

 
 Anıl60.000 TL75.000 TL105.000 TL100.000 TL 
 Elif45.000 TL75.000 TL75.000 TL 

 

*In this example, it is deemed partners in joint account to have equal share. According to this, shares of Anıl and Elif in TRY 60,000 stand for TRY 30,000 for each of them.

21.

In which currency are the payments of the insured deposit, participation and private current accounts made?

 

All insured payments are made in TRY.

TRY equivalent of the foreign currency accounts is determined based on the buying rate of exchange of TC. Merkez Bankası A.Ş. on the date when the operating license of the relevant credit institution is revoked and TRY equivalent of accounts in precious metal is determined based on the final quotation of the Istanbul Gold Exchange and the buying rate of exchange of TC. Merkez Bankası A.Ş. on the date when the operating license of the relevant credit institution is revoked.

22.

When are the payments of the insured deposit, participation and private current accounts made?

 

In accordance with the sub-clause 3 of the article 10 of the “Regulation on Procedures and Principles related to the Payment and Liquidation of the Insured Deposit and Insured Participation Fund in Banks with a Revoked Operating License” introduced in the Official Gazette No. 26443 of 02.23.2007, the payment period and determination of the insured proportion of the deposit and participation fund, which accuracy is confirmed in a way to leave no room for doubt, are 3 months following the date when the operating license of bank is revoked. This period may be extended for three months, if needed. In the event that the period is not sufficient due to force majeure, this period may be extended two times by the Fund's Board, not more than three months for each. Payments are made directly according to the resolution of the Fund's Board or via a bank to be announced by the SDIF.

23

May the part of the deposit and participation fund, which exceeds the insurance limit, be requested?

 

In case of bankruptcy of the credit institutions, owners of the deposit and participation funds are the privileged creditors in terms of third rank in the article 206 of the the Law No. 6183 on Collection Procedure of Public Receivables for the part not subject to the insurance, following the privileged creditors of the SDIF and creditors of public institutions and social security institutions in the scope of the Law No. 6183 on Collection Procedure of Public Receivables. The written request of the creditor is necessary to register these creditors in their respective ranks in the Bankrupt's Estate.

24.

Is there announcement obligation for the insurance of the insured deposit and participation funds of the credit institutions?

 

The credit institutions are obliged to hang the content related to insurance of the savings deposit, participation fund and precious metal and foreign currency accounts having same nature, along with the written statement specified by the SDIF, in a visible place of their branches.

25.

Are the deposit and participation funds confidential?

 

In line with the sub-clause 1 of the article 73 of the Banking Law no. 5411, it is ensured that penalty shall be imposed to the bank employees, other officials and third parties, who disclose the secrets, which they learnt from the disclosing banks or clients, to the institutions or persons other than the ones authorized clearly by the law.