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Bank bluffs

Politicians Ny Tid tries to get in the way, reluctant to reveal the bluff that your bank account should be secured. Or is a lack of knowledge revealed here?

Minister of Finance Siv Jensen has consistently defended maintaining a guarantee of two million kroner for you and me with salary and savings accounts in Norwegian banks, despite the fact that the EU has asked Norway to adapt to a lower European level of 100 euros (a dispensation lasts only ut 000). In the December issue of Ny Tid, we revealed that the equity in the Banks' Guarantee Fund only covers just under three per cent of any deposit – that means 2018 billion out of a total of about NOK 30 billion people have deposited in the banks. This is all the banks' own funds have at their disposal for the individual citizen in the event of a possible collapse in the money / credit market.

Screen Shot at 2016 05-11-16.04.14 Norway's central bank governor Øystein Olsen. PHOTO: Tore Sætre – Own work, CC BY-SA 4.0. DnB's chairman of the board. . .

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Hans Eirik Olav
Olav has a long time from the financial world behind him.


  1. There is a part until I have not managed when it comes to the "guarantee" of 2 million. Does anyone know,, should a banking crisis arise, whether the "guarantee" applies to each account, so that a person has e.g. 2 accounts with more than 2 million in each account, there is a guarantee of 4 million. Or does the "guarantee" only apply to 2 million for each person regardless of how many accounts a person has ?.

  2. For the discussion between Bjørkemo and anon, I must give the right to anon (and Øystein Amundsen) It is true that 30 billion of 1000 billion is 3%, but 1000 billion is all deposits. The guarantee only applies to deposits up to 2 million, and then percent somewhere between 3% and 100 ″ (probably closer to 3% than 100%). What is not clear is how much deposit is covered by the "guarantee". Maybe the "Bank's Guarantee Fund" can answer this ?.
    Another thing I wonder is about what DnB's problems in 1992 and 2008 led to. I mean remember that it went beyond the shareholders, but what about the depositors?

  3. Are you probably the one who does not understand Øystein's objection. Of the 1000 billion, which no longer exist, how much money will there be with 2 million NOK or 100.000 euros for each person? Probably more than 30 billion, but not 97%. There are many large accounts that are not secured but are not a societal problem.

  4. A deposit guarantee of 2.77% of total "guaranteed" deposits means in reality that you do not get 5 øre if the bank collapses. Others, if any, get it before you. In other words, you are fooled. What happens to your loan depends on which bank you use, the relationship between debt and equity, and what the government ultimately does. It is important not to be mortgaged to the pipe so that you are exposed and required more equity in the event of a significant fall in value, and it is important that you can service the loan when it slams and / or the interest rate rises. Hope it helps a bit?

  5. That your loan runs on with a new creditor, you must take for granted, the loan has value as long as someone pays installments + interest and mortgage objects have value. With the new bail-in rules, it is possible for the bank to confiscate client funds to save the bank's operations. As could be observed in Cyprus in 2013, and new laws to make such operations easier to implement have been adopted in very many countries afterwards, most relevant to us, in the EU. So the answer is yes it is theoretically possible.

  6. Hello.
    Maybe I'm a little late out here, but I would like clarity on something around this.

    I have both a mortgage, BSU and a savings account in the same bank. Now I have a good deal less than 2 million in the account, but since the politicians are happy to change the rules along the way (and we apparently do not have coverage anyway) I wonder the following:

    If the bank goes bankrupt, will I under any circumstances risk that the loan continues with a new creditor, while my savings disappear?

  7. Take and read through what he writes again. There are 1000 billion in the banks. The Bank Guarantee Fund is said to be worth NOK 30 billion. Can it be so difficult to understand?

  8. You could also have mentioned the so-called "splice team", where DNB cheated tens of billions from Norwegian depositors with whom they are now speculating.

  9. "Neoliberal" is a form of new speech, the word names a phenomenon that is neither new nor liberal. Corporatism has never been liberal. In addition, calling them "neoliberals" makes the confusion total. The Liberal Party quite recently started the only one in Norway that has a conscious attitude to the problems raised here, and the only one that proposes effective solutions.

    Banking and monetary policy in the Liberals' adopted political program:

  10. My last comment is a mispublish, because it looked like the first one did not work. The latter can therefore be ironed with advantage. (Can't do it myself) .. Sorry for the mess…

  11. It is serious when the politicians we believe have control over the important things in politics, the situation turns out to abdicate from one area after another.
    This article makes it embarrassing and frighteningly clear that this applies to the financial sector and what happens to releases on the stock exchanges.
    If the National Assembly politicians around the various countries took on the responsibility that lies with them in these areas, they would have long ago stopped trading financial products as totally opaque and dangerously destabilizing for the economy. Various corruption scandals and ditto tax haven bonanza we would have seen far less of if it had happened.

    The TiSA agreement is another example of how the Storting politicians, with very few exceptions, have not understood what is happening in this extremely consequential area. Norway has negotiated with 50 countries outside the WTO, on a liberalization agreement for all kinds of services. It is moving in the direction of a sharp reduction in political room for maneuver through strengthening the rights of large foreign companies, and with a dangerous sharpening of competition from abroad for very many companies and workplaces.

    The government presents a good deal of half-truths in this area, which the majority in the Storting seems to take for good fish. For example, it is claimed that TiSA will be good for employment. Something that is strongly misleading because the right thing is that the agreement will be good for some companies that work in foreign markets, but on the other hand an ugly threat to Norwegian domestic-oriented companies that face tougher competition.

    The flow of information that not least the internet today helps us with will probably make it more difficult for the various ministries in the government to continue to "govern" in these areas as if they were "home alone". The noise in Europe due to a policy that takes better care of the banks than most people, Norwegian politicians should also take as a signal…

  12. It is serious when our politicians – those we believe take care of our interests – actually abdicate in area after area.
    There is no doubt that stock exchanges around the world have been allowed to develop products and shady practices that the National Assembly politicians understand nothing of. This article makes this relationship embarrassing and frighteningly clear. It makes me think of a praiseworthy comment from a local bank in my district (Sjøholt savings bank) who in connection with the Terraskandalen a few years ago, could tell that they did not offer the relevant stock exchange product (which later turned out to be rotten) because it was unwise to understand (assess the risk associated with the product).
    If the right politicians took the responsibility that actually lies with them, then they would not actually allow financial products that are so totally opaque to be traded. Nor generally allow financial speculation to go completely off the hinges to that degree. They would also have long ago tackled corruption scandals and tax haven bonanza.

    The TiSA agreement that Norway has now negotiated for three years outside the WTO, and which will mean significantly more secure jobs in the service sectors, from transport and energy supply to parts of the welfare services, the financial sector, etc., etc., it turns out that the same politicians are not informed. about. They blindly trust undocumented claims by the government that TiSA will be good for employment, and similar misinformation. The reality is that TiSA will reduce political room for maneuver to a degree that very likely makes the agreement unconstitutional without a clearance in the Storting about exactly this.
    The flow of information that not least the internet now helps us with, means that those times may now be over, where the various ministries in the government were able to manage such matters as if they were "home alone". The uproar in Europe linked to a policy that takes better care of the banks than most people is a signal that Norwegian politicians should also take seriously.

  13. Dear Erik!
    Digger that you are trying to make the twisted monetary system available to us mortals!
    But sometimes it sounds like you are taking some shortcuts in the arguments.
    For example, 'the undercoverage of the 97 percent deposit guarantee'.
    If the guarantee was 2 million per inhabitant. And if they set aside 3% of the deposited money, it does not mean that the guarantee is covered by 97%. There are apples and pears in each other ..

    Otherwise, I would recommend you the fjord year's fattest book; To our friends of the invisible committee.
    Is it a collapse that is to be feared, or is it just a lack of collapse? A lack of confrontation, a sliding crisis without any place to seize .. What are we going to do then? And not least when?

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