Innskuddet

Innskuddet, also known as the Norwegian Deposit Insurance Scheme, is a government-backed insurance scheme designed to protect depositors in the event of a bank failure. Established in 1992, it is overseen by the Norwegian Financial Supervisory Authority (Finanstilsynet). The scheme ensures that depositors' funds are safeguarded up to a specified limit, currently set at NOK 2 million (approximately USD 200,000) per depositor, per bank.

Innskuddet operates by providing financial compensation to depositors in the event of a bank's insolvency. The compensation is paid out from a dedicated fund, which is funded through a levy on banks' profits. This levy is designed to be proportional to the size of the bank and its risk profile, ensuring that larger and riskier banks contribute more to the fund.

The scheme is mandatory for all banks operating in Norway, and it applies to all deposit accounts, including savings accounts, checking accounts, and time deposits. However, it does not cover certain types of accounts, such as those held by companies or trusts, or funds held in foreign currencies.

Innskuddet has been praised for its effectiveness in providing depositor protection and maintaining public confidence in the banking system. Since its establishment, it has paid out compensation to depositors on numerous occasions, demonstrating its role in protecting depositors' funds in the event of a bank failure.