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ABOUT THE SAVINGS
DEPOSIT INSURANCE FUND
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.
Source: http://www.tmsf.org.tr/index.cfm?fuseaction=public.dsp_menu_content&menu_id=12&lang=en_EN# |