Comparison For Functions Between Saving Deposit Insurance Fund (SDIF) And Investor Compensation Center (ICC)

According to the Banking Act (No.5411), efficient functioning of the credit system –especially in banks which can be regarded as the driving force behind the economy- is of utmost importance to the confidence to and stability of financial markets. This, in turn, can only be made possible if deposits or participation funds are deposited in the bank in assurance. Due to the fact that the system guarantees a certain amount, the owner of a savings account who will deposit bank deposits or participation funds can act with peace of mind in spite of the risks that can be realized in the bank. In the case of the saving account owners, this is fulfilled by the Saving Deposit Insurance Fund (SDIF) regarding the saving deposits. The confidence to and the stability of financial markets is also necessary to the operation of the Capital Markets Act (No. 6362). One way of ensuring that many capital market instruments are available and encouraging investment in them is designing a guarantee agency for the risks such as the savings deposits and participation funds in the banks as well as the risks such as custody delivery and cash payment on behalf of the investors. Indeed, the Centre for the Compensation of Investors (ICC) provides such a system with regards to financial markets in Turkey. This article aims to introduce these two institutions in brief by reviewing their main functions, and examine the legal features of contracts regarding them by comparing those to that of legal framework relating to the guarantees