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