Estonia, Financial Services, Legislation

One of the goals of the approved proposal is to harmonise the national legislation with the EU regulations on guaranteeing savings deposits in banks. Due to that, the maximum limit of guaranteed deposits will be raised from the current level of 50,000 euros to 100,000 euros and the deadline for making compensation payments will be shortened from three months to 20 working days, writes LETA.

The new draft law will also increase the powers of the Financial Supervisory Authority in interfering with banks’ operations and to supervise their work. One of the significant changes is to provide the State with the option of considering forced acquisition of shares from owners of banks founded in Estonia. This would be an ultima ratio measure for the case where implementing other relevant measures would not guarantee the stable functioning of the financial system in Estonia.