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Frequent Asked Questions
These FAQs explain the concept of deposit insurance and the role of the Bank Deposit Security Fund in protecting depositors’ funds and supporting the stability of the banking system. They provide clear information about coverage, member banks, and compensation procedures to enhance confidence in the Sudanese banking sector.
What is Bank Deposit Security Fund?
An independent institution established according to the law of Bank Deposit Security Fund to protect depositors and participate in the soundness and stability of the financial system and reinforces confidence of the public in it.
What is Deposit Guarantee?
Deposit guarantee is a system established by governmental authorities to safeguard depositors from losing their deposits at banks in case of insolvency of any bank and fail to meet its obligations towards depositors. This system was established in Sudan since 1997.
What is the role of Bank Deposit Security Fund?
The role of Bank Deposit Security Fund is to manage deposit guarantee system and protect the rights of depositors at banks. It also participates in managing risk in financial and banking system to enhance banking stability.
How the Fund participate in financial stability?
The Fund reviews the financial status of banks to explore the points of weakness so as to discuss it in the Coordination Committee established between the Fund and the Central Bank of Sudan. Then, the Banking Control Directorate and Inspection Directorate undertake the responsibility of resolving the problem. Also, the Fund participates in banking system stability by direct and prompt contact with the insolvent bank to prevent contagion effects.
Who are the members of the Bank Deposit Security Fund?
All banks including branches of foreign banks eligible and licensed to conduct banking business. The membership is compulsory according to Article 15(1) of the Fund Law.
Does guaranteeing a deposit require an application for that?
No, deposits are guaranteed without any fees.
Who pays the premiums in the deposit guarantee system?
For current and savings deposits, the bank pays the premium on behalf of the depositors. The government authorities, Ministry of Finance and National Economy, and the Central Bank of Sudan each participate by 15% of the coverage deposits. For investment deposits, the account owners pay the premium.
Is there a coverage limit or is it full coverage?
There is no full coverage, but there is a maximum coverage limit which is reviewed periodically so as to cover the maximum possible number of depositors.
Is it possible to make an extra guarantee if the deposit is greater than the coverage limit?
No. Deposit guarantee, unlike conventional insurance such as vehicle or life insurance, is restricted to guaranteeing deposits only according to the maximum coverage limit specified in the Bank Deposit Security Fund Law.
Which types of deposits are guaranteed?
Current, savings, and investment deposits are protected.
Which deposits are exempted from coverage?
- Deposits in foreign currency.
- Deposits used as collateral or guarantees in banking operations.
- Deposits of chairmen, members of boards of directors, and general managers of any guaranteed bank.
- Deposits of shareholders who are found responsible for the insolvency of the bank.
- Deposits of certified auditors who audited the accounts of the bank.
- Deposits of spouses and children of members of boards of directors and general managers.
- Deposits of subsidiary companies in which the bank owns the largest share.
Does the guarantee include deposits of Islamic and conventional banks?
Yes. The deposit insurance system covers deposits in both Islamic and conventional banks.
If I have deposits in different banks that are members of the Bank Deposit Security Fund, can all these deposits be consolidated into one account for guarantee purposes?
No. Deposits held in different banks are guaranteed separately according to the maximum coverage limits.
If I have different accounts in different branches of the same bank, are they guaranteed separately?
No. Deposits held in more than one branch of the same bank are combined and treated as one account for guarantee purposes.
Are deposits of non-Sudanese nationals in local currency guaranteed?
Yes. The nationality of depositors has nothing to do with deposit guarantee or its coverage.
What is the mechanism for claiming reimbursement of my deposits in case of bank failure?
In case of bank insolvency and the Central Bank decides to liquidate the bank, the liquidator will promptly inform depositors about how, when, and where they can receive their guaranteed deposits according to the applicable rules and regulations.
Does the deposit guarantee system mean that banks are not subject to the supervision of the Central Bank of Sudan?
No. The Central Bank of Sudan is the primary supervisory and regulatory authority of the banking system. The role of the Fund is complementary and supportive in maintaining the stability of the banking system.