The Deposit Guarantee Fund (
Spanish: ''Fondo de Garantía de Depósitos'') is a
fund Fund may refer to:
* Funding is the act of providing resources, usually in form of money, or other values such as effort or time, for a project, a person, a business, or any other private or public institution
** The process of soliciting and gath ...
financed by
retail,
cooperative, and
savings banks (Spanish: ''cajas de ahorros'') as well as the
Spanish central bank covering
deposits in Spanish banks.
History
First set up in 1977, it originally guaranteed deposits up to the equivalent of 15,000
euros
The euro (symbol: €; code: EUR) is the official currency of 19 out of the member states of the European Union (EU). This group of states is known as the eurozone or, officially, the euro area, and includes about 340 million citizens . T ...
per
account and account holder. Since 2010, it also plays a crucial role in the management of the
FROB.
Characteristics
The FGD is a private
legal entity which guarantees the deposits in Spanish banks based in
Spain and the
European Union. The Fund guarantees up to 100,000 euros (since 10 October 2008). It is financed by an annual 2.5‰ levy on bank
assets. The
levies are deposited in three separate funds depending on whether the bank is a retail, cooperative or a savings bank. The
Bank of Spain
The Bank of Spain ( es, link=no, Banco de España) is the central bank of Spain. Established in Madrid in 1782 by Charles III of Spain, Charles III, today the bank is a member of the European System of Central Banks and is also Spain's national ...
together with the
Ministry of Finance may reduce the levy if the total assets of the funds reach 1% of the deposits of the respective banks.
Resources
Retail Bank deposit Guarantee Fund (FGDEB)
At close 2009 the total assets stood at 2.962 billion euros.
Savings Bank Deposit Guarantee Fund (FGDCA)
At close 2009 the total assets stood at 4.367 billion euros.
Savings banks pay 0.1% per year (approx. 500 million euros). In 2009 the fund contributed 1.3 billion euros due to the bankruptcy of CCM, 1.27 billion euros to the FROB and set aside 2.252 billion euros to guarantee depositors funds in
CajaSur.
Cooperative Banks Deposit Guarantee Fund (FGDCC)
At close 2009 the total assets stood at 0.675 billion euros.
Other Schemes
Another similar scheme called FOGAIN exists to cover losses in
investment
Investment is the dedication of money to purchase of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort.
In finance, the purpose of investing i ...
instruments not considered as deposits.
References
External links
Deposit Guarantee, Banco de EspañaLatest financial statements.
Banking in Spain
Deposit insurance
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