Understanding the Deposit Guarantee Scheme Directive

The Deposit Guarantee Scheme Directive is a European Union legislation that aims to protect depositors in the event of a bank failure. The directive sets a minimum level of protection for depositors, ensuring that their deposits are safeguarded up to a certain amount.

The directive was adopted in 1994 and has undergone several amendments since then. One of the key objectives of the directive is to promote confidence in the banking system and prevent bank runs.

The directive applies to all credit institutions in the European Union, including banks and credit cooperatives. It requires these institutions to have a deposit guarantee scheme in place, which must be funded by the institution itself and not by the taxpayer.

Depositors in the European Union are protected up to €100,000 per depositor, per bank, under the directive. This means that if a bank fails, depositors will not lose more than €100,000 of their deposits.

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Raisin's savings products are protected by EU laws, ensuring your deposits are safe up to an equivalent of €100,000 per depositor and bank.

You can rest assured that your savings are secure, thanks to the protection offered by Raisin's savings products.

The Deposit Guarantee Scheme Directive plays a crucial role in safeguarding your deposits, providing a safety net in case of bank failures.

In the event of a bank failure, your deposits are protected up to €100,000 per depositor and bank, according to EU laws.

The Deposit Guarantee Scheme Directive has been implemented in a number of Member States, with some countries having already put the new regulation into place in June 2016.

The time limit for repayment by deposit guarantee funds is being shortened, with a new deadline of 7 working days expected to be in place by 2024.

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This full version contains a summary of legislation, legal context, European legal basis, related dossiers, and cases from the European Court of Justice.

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The next steps in the implementation process are uncertain, as the fate of EDIS is still up in the air.

The Parliament is currently discussing a draft Resolution on EDIS, with a planned debate on March 20, 2024.

A whopping 320 amendments have been tabled to the draft Resolution, which will likely have a significant impact on the outcome.

The success of these amendments in complementing the CMDI framework and the Banking Union remains to be seen, as they face significant headwinds in terms of political consensus around risk sharing and reduction.

The Deposit Guarantee Scheme Directive has a significant impact on legislation. The directive was adopted by the European Parliament and the Council on 11 November 2009.

Member states are required to establish a deposit guarantee scheme that protects depositors in the event of a bank failure. This scheme must be fully funded and have sufficient resources to cover all deposits.

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The directive sets a minimum coverage level of 100,000 euros for deposits. This means that depositors will be protected up to this amount in the event of a bank failure.

Deposit guarantee schemes must also be transparent and provide clear information to depositors. This includes information on the scheme's coverage, funding, and any conditions or limitations.

The directive also requires member states to establish a compensation scheme for depositors. This scheme must be designed to compensate depositors for any losses they may incur due to a bank failure.

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