Government Bank Insurance Fund (Norway)
What is the Government Bank Insurance Fund?
It’s a fund that was set up in response to the Norwegian banking crisis of 1988-1992. This deposit insurance scheme was implemented by the country's government to protect bank deposits from losses incurred by financial institutions unable to pay their debts.
Where have you heard about the Government Bank Insurance Fund?
The financial crisis was caused by a lending boom as Norwegian banks engaged in increasingly risky credit activities. The objective of the Government Bank Insurance Fund was to restore financial stability and end the recession.
What you need to know about the Government Bank Insurance Fund.
The fund was established by the Norwegian government on March 15, 1991. Because the banking failure triggered an economic downturn, political leaders had to step in to maintain deposit insurance schemes to protect people's savings.
The Commercial Banks' Guarantee Fund and the Savings Banks' Guarantee Fund had been responsible for guaranteeing deposits, but they both struggled during the financial crisis. Today, deposit insurance is handled by the Banks’ Guarantee Fund.