The Hungarian Deposit Guarantee Scheme (DGS) is administered by the Depositor Compensation Scheme of the National Deposit Insurance Fund (OBA). The OBA’s primary objective is to safeguard the interests of account holders in Hungarian banks, protecting their deposits in the event of a bank failure. By providing deposit insurance, the OBA ensures financial stability and promotes trust in the country’s banking system, preventing potential bank runs and maintaining consumer confidence.
The need for deposit insurance in Hungary stems from the potential risks associated with bank failures, which can have a significant impact on depositors and the wider economy. Deposit insurance serves as a safety net, guaranteeing that depositors can access their funds up to a specified limit even if their bank becomes insolvent. This protection not only prevents the loss of savings for individual depositors, but also helps to stabilize the financial system by preventing panic and minimizing the likelihood of systemic crises.
The OBA operates under a defined organizational structure, overseen by a Board of Directors and an Executive Board, ensuring the proper functioning of the DGS in Hungary. The Board of Directors is responsible for establishing policies and guidelines, while the Executive Board manages the day-to-day operations.
Contact information for the OBA is as follows:
Address – H-1132 Budapest, Visegrádi u. 48., Hungary;
Telephone – +36 1 450 3650;
Email – [email protected];
Website – www.oba.hu.