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Cabinet Introduces Bill Improving Depositor Protections
The ministers' cabinet will introduce draft legislation designed to increase protection for depositors and allow the government to stave off financial crises more effectively in the future.
One goal of the bill approved at the cabinet meeting on September 9 is to bring domestic legislation into conformity with EU laws.
As a result, the amount of insurance would increase from 50,000 euros to 100,000 euros, and the compensation would be paid out in 20 business days instead of three months.
The bill also proposes to expand powers for the Financial Supervision Authority so that it could intervene in the banking sector and review activities.
Another key change could give the state the option of expropriating shares from Estonian banks as a measure of last resort.