Premiums

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 RatingsPremium (%) p.a.
grade 1 banks0.45%
grade 2 banks0.65%
grade 3 banks0.90%
grade 4 banks1.15%
grade 5 banks1.50%