talletussuojausta
Talletussuojausta, often translated as deposit insurance, is a system designed to protect depositors in banks and other financial institutions. Its primary purpose is to maintain confidence in the banking system by ensuring that individuals and businesses will not lose their savings if a bank fails. When a financial institution becomes insolvent, the deposit insurance scheme steps in to reimburse depositors up to a certain limit.
In many countries, talletussuojausta is a mandatory system for licensed credit institutions. The coverage typically applies
The existence of talletussuojausta plays a crucial role in preventing bank runs. Without it, news of a