Deposit Guarantee Scheme Denmark

Information Leaflet – A Deposit Guarantee Scheme Reimburses a Limited Amount to Compensate Account Holders Whose Bank in Denmark Has Failed

Deposit Guarantee Scheme Denmark: The Danish Guarantee Fund protects bank depositors and investors of credit institutions that participate in the Guarantee Fund when these institutions are subject to reconstruction or bankruptcy.

Secured Deposit Limit: Eligible depositors are currently entitled to claim up to DKK 750.000 (€100,000 or its equivalent in other currency) under the Danish Guarantee Fund. In case of joint accounts, the secured deposit limit applies per person.

Special and Additional Coverage: Deposits may receive additional protection in case of the failure of the credit institution holding the account. Such special and additional coverage includes pension savings accounts, deposits with social purposes and deposits relating to real estate transactions.

Coverage for Pension Savings Accounts: The Guarantee Fund covers the full amount of pension savings accounts pursuant to the legislation on, for example, capital pensions, annuity pensions
and retirement pensions. This means that the EUR 100,000 limit does not apply to such accounts.

Coverage for Deposits with Social Purposes: The Guarantee Fund covers eligible deposits that
have a social purpose pursuant to legislation and are linked to special life events such as marriage,
divorce, disability or death. The fund also covers deposits originating from damages or compensation
paid pursuant to legislation or from damage or injury resulting from a criminal act or miscarriage of
justice. Such deposits are covered by up to EUR 150,000 per eligible depositor for a period of up to six months after the amount was deposited, regardless of whether or not the amount is held in a separate
account.

Coverage for Deposits Relating to Real Estate Transactions: The Guarantee Fund covers eligible deposits from transactions relating to real property if the real property was used or is intended mainly for noncommercial purposes. Examples of transactions covered: (i) Deposits of purchase sums in connection with sales (ii) Deposits in the form of proceeds from loans secured on real property and funded by mortgage bonds. The Guarantee Fund covers amounts up to EUR 10 million for a period of up to 12 months after the amount was deposited, regardless of whether or not the amount is held in a separate account.

Claim Filing Procedure an timeframes: Not later than five business days after commencement of reconstruction or bankruptcy proceedings, the Guarantee Fund will send all eligible account holders a statement of their total balance together with guidelines on how to proceed. These guidelines will also be available at the website of the Guarantee Fund. A bank account at a licensed credit institution in Denmark is required to receive repayment via the Guarantee Fund. The new bank will help, after receipt of the account statement, with the filing of the DGS claim with the Guarantee Fund. The Guarantee Fund will pay insured deposits within seven business days. If payment is not received within seven business days, it is recommended to contact the Guarantee Fund as deadlines may need to be observed for claiming the repayment.

Repayment Conditions: Not all bank deposits are protected under the Guarantee Fund. Excluded deposits include deposits held by banks, investment firms, financial institutions, insurance companies, pension firms, public authorities and foreign financial enterprises. The Guarantee Fund also does not cover deposits originating from transactions in connection with which a judgment concerning money laundering has been delivered, and deposits of which the owner has never been identified.

DGS Claim Rejections: Rejected DGS claims in Denmark can be challenged at the Guarantee Fund or via the court. A reinspection requires sufficient evidence of claim eligibility.

Scheme Architecture: Licensed and supervised credit institutions that operate in Denmark must participate in a deposit guarantee scheme. Membership requires individual institutions to make financial contributions to the scheme based on their customer and risk profile. The Danish Guarantee Fund has about 9 Billion DKK in reserves to cover potential failures.

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