Deposit guarantee schemes: is your company protected?

Author: | Published: 9 Dec 2014

New European directives expand the entities protected by deposit guarantee schemes. Taking Germany as an example, the changes represent a significant shift

Across Europe, small entities generally benefit from the protections granted by statutory deposit guarantee schemes (DGSs). However, as these are based on member states' implementation of EU directives, often neither the bank nor the depositor are able to assess whether or not the relevant DGS applies. Directives issued this year could change this, and strengthen the protection of deposits.

A deposit means any credit balance which results from funds left in an account, and which a credit institution is legally and contractually obliged to repay, as well as any debt evidenced by a certificate issued by a credit institution. Member states have to ensure that any depositor's aggregate deposits are protected up to €100,000. By principle, all depositors of a credit institution – and any of its EU...