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 0.45% per annum of the total amount of insured deposits whereas banks with the lowest rating grade would have to pay 1.5% per annum.
Current differential premium rates
|Examination Ratings||Premium (%) p.a.|
|grade 1 banks||0.45%|
|grade 2 banks||0.65%|
|grade 3 banks||0.90%|
|grade 4 banks||1.15%|
|grade 5 banks||1.50%|