When a deposit is compensated?

As per law “On Insurance Deposit”, a regular payable deposit is compensated in the case that an insurance scheme subject cannot afford to pay it. The insurance deposit compensation is the recognized or payable money value to depositor in case of insurance event, in compliance with respective law.

Compensation process

The Agency of Deposit Insurance is the solely institution compensating deposits of depositors in the banks/SCA operating within the territory of the Republic of Albania.
The compensation process becomes effective at the moment when the Agency is notified, in written, by the Supervisory Authority, on the placement of subject member of deposit insurance scheme on the obligatory liquidation. The Agency makes public the announcement on the commence of compensation process, place and timing of such deposit compensation, within 3 days upon the written notification by the Bank of Albania on the placement of the subject under the obligatory liquidation.

The depositor or his/her representative bears the right to receive the information directly through the environment of the subject placed under obligatory liquidation, in CSA Union or agent bank. Such agent bank or CSA union carrying out the compensation process is nominated under the Agency Management Council decision, in compliance with selecting criteria, suggested by the Agency and approved by the Bank of Albania.

As per law “On Deposit Insurance”, the Compensation Process terminates not later than 3 months from its starting date. In completion of the compensation process legal deadline, every depositor that for any defined ground, might not be compensated in compliance with requirements of this law, can submit within 10 years form the insured event at the Agency, a claim on the compensation amount.

Payment methods

The Agency can compensate an insured deposit through any of these methods:
a) Payment of the amount in ALL, to the person, in the environment of placed subject under liquidation in cooperation with liquidator
b) Payment of the amount in ALL, to the person, in the environment of a bank member of the scheme (agent bank)
c) Transfer of the amount benefited by depositor to a bank member of deposit insurance scheme
d) Cheque payment
e) Other payment methods approved by Supervision Authority regulations

Every depositor will be compensated to the amount ALL 2,500,000 from each bank and ALL 2,000,000 from each CSA. All deposit in foreign currency will be converted in ALL, as per Bank of Albania exchange rate on the day of bank liquidation. Depositors bearing overdue obligation to the bank / CSA (overdue loan payment, child compensation, etc.), will have such obligations deducted from the legal obligated amount.

Documentation the bank depositor should have

• Identification papers
• Deposit proof
• Any other document showing claiming on deposit compensation