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Spain’s Deposit Guarantee Fund: Protecting Deposits up to €100,000

Madrid, Spain - The Bank of Spain and associations representing credit institutions in Spain have appointed and designated a total of nine members to the Deposit Guarantee Fund (FGD), a regulatory body that provides protection for depositors in the event of a bank failure.

Types of Deposits and Limits Covered

The FGD covers:

  • Deposits in savings accounts, current accounts, and fixed-term deposits up to €100,000
  • Transferrable securities and financial instruments up to €100,000 entrusted to a credit institution
  • Specific types of deposits, regardless of amount, during the three months after they are credited or become legally transferable

Depositors Excluded from Coverage

However, not all legal entities qualify as depositors eligible for FGD coverage. Excluded from coverage are:

  • Deposits made by other credit institutions on their own behalf and in their own name
  • Deposits held by public administrations

Funding the Deposit Guarantee Fund

The FGD is funded through:

  • Annual contributions required of all members, calculated according to the amount of each institution’s guaranteed deposits and its risk profile
  • Other contributions among members, distributed according to a base calculation and with limits determined by regulation
  • Resources raised on the stock markets or through loans

Bank Secrecy Requirements

In Spain, there is no specific law regulating bank secrecy. However, requirements applicable to this concept are extracted from several laws, including:

  • The Spanish Constitution
  • The Civil Code

Banks must protect the honour, privacy, and image of individuals, as well as fulfill due diligence obligations in contractual relationships.

Sanctioning Regime

The Royal Decree-Law 16/2011 specifies a sanctioning regime with penalties for entities that fail to comply with their FGD obligations.

Conclusion

Spain’s Deposit Guarantee Fund provides essential protection for depositors, covering deposits up to €100,000 and specific types of deposits regardless of amount. The fund is funded through annual contributions, other contributions among members, and resources raised on the stock markets or through loans.