The Icelandic Depositor Compensation Scheme, Tryggingarsjodur (TIF), is a deposit guarantee scheme (DGS) designed to protect account holders in case of a bank failure. In the event of a bank’s insolvency or liquidation, TIF compensates depositors up to a specified limit, ensuring financial stability and confidence in the banking system. The need for deposit insurance arises from the potential risk of bank runs, where depositors rush to withdraw their funds, causing a collapse in the banking system. By providing a safety net for account holders, DGS reduces the likelihood of bank runs and contributes to the overall stability of the financial sector.

TIF operates under the supervision of the Icelandic Financial Supervisory Authority (FME) and is funded by contributions from its member institutions. These financial institutions, which include banks, savings banks, and credit institutions operating in Iceland, are required by law to be members of the scheme. The deposit guarantee covers deposits up to 20,887 EUR per depositor per institution, which is in line with the European Union’s Deposit Guarantee Schemes Directive.

The organizational structure of TIF is governed by a board of directors, with representatives from the financial sector, the government, and other stakeholders. The board is responsible for overseeing the administration and operation of the scheme, ensuring its compliance with relevant regulations and guidelines.

The contact information for the Icelandic DGS administration is as follows:

Tryggingarsjóður innstæðueigenda og fjárfesta (TIF)
Kalkofnsvegur 2, 101 Reykjavík, Iceland.
Telephone: +354 525 2700,
Email: [email protected].