Deposit guarantee is a pillar of savers’ confidence in the banking system. When a bank defaults, the Luxembourg Deposit Guarantee Fund (FGDL) makes €100,000 per depositor available to clients within seven days. What is the share of guaranteed deposits across the market? may come as a surprise.
In relation to the total amount of deposits eligible for the deposit guarantee, the proportion of guaranteed deposits is only 29%. This average conceals significant variations, linked to the diversity of business models. While private banks, with fewer accounts but larger deposits, have a lower proportion of guaranteed deposits, retail banks,…
