All mandatory members are obliged to pay insurance premiums to DIFK which represent the main funding source of the Deposit Insurance Fund.
There are two types of insurance premiums: initial premiums which have to be paid by newly licensed banks (0.3% of initial capital) upon commencement of their membership in DIFK and on-going premium which all member institutions have to pay regularly on a quarterly basis.
The premiums levied on member institutions are differentiated according to the risk they pose to the DI Fund. These risk-based premiums are charged to member institutions as a percentage of the amount of insured deposits they hold, subject to a current coverage limit.. DIFK bases the differential premiums system with CBK’s on-site examination ratings, where the highest graded member banks pays 0.3% per annum of the total amount of insured deposits whereas banks with the lowest rating grade would have to pay 1.5% per annum.
In line with the Law on Deposit Insurance, DIFK has the right to draw the due premium amount from member bank’s account with CBK.
DIFK will draw the required premium from the institution’s account at the CBK by the applicable date
Ongoing premium collection schedule
|Quarterly (Prepayment periods)||Period||Due date|
|Q1||1 January to 31 March||31-Jan|
|Q2||1 April to 30 June||30-Apr|
|Q3||1 July to 30 September||31-Jul|
|Q4||1 October to 31 December||31-Oct|
The premium payment is treated as a tax-deductible expense by the banks.
Annual Premiums collection