Depositors guarantee
100.000 euro
per depositor and per bank
7 days
Depositors payout in 7 working days
Deposit guarantee is a component of the financial safety net and contributes to ensuring the stability of the banking system.
It helps protect the social function of saving and avoid serious consequences for depositors in the event of a bank failure.
It provides safeguards for the less sophisticated savers, that is, those who lack tools to adequately assess the risk level of institutions they entrust with their savings.
Legislative Decree n. 30 of 15 February 2016, published in Official Journal no. 56 of 8 March 2016, transposed into Italian law Directive 2014/49 / EU which repealed Directive 94/19 / EC which had been which have been also amended aby Directive 2009/14 / EC on coverage limits and the reimbursement timeframe.
The present coverage limit is 100,000 euro per depositor, per bank. The reimbursement timeframe is 7 working days, starting from the date the compulsory administrative liquidation of the bank takes effect.
Following Art. 96-bis.1 of the Italian Consolidated Banking Law (TUB) and Art. 33 of FITD Statute, claims on repayable funds acquired by member banks, in euro or other currencies, under the form of deposits or other forms, including bankers’ drafts and equivalent instruments, are eligible for reimbursement by FITD.
Certificates of Deposit are deposits, provided they do not represent securities issued in series (Art. 69-bis, TUB).
Clarifications
• Reimbursement Procedure
In accordance with the current legislation and the Statute of FITD, the timeframe for the reimbursement of deposits, up to 100,000 euro per depositor and per bank, is 7 working days, starting from the date on which the compulsory administrative liquidation provisions take effect.
FITD issues the payments through one of its member banks, acting as Agent bank, and its branches. Depositors can go to any of the branches of the Agent bank and receive their money via: i) bank transfer to a current account (different from that held at the liquidated bank); ii) bankers’ drafts; iii) cash withdrawal.
FITD ensures to provide depositors with all necessary information and clarifications on its website, in a dedicated section on the liquidation procedure of the bank and the reimbursement of depositors.
The name of a depositor may not appear in the list available to the Agent bank within the 7-day period. This would occur when the depositor falls within one of the categories for which repayment is deferred by law.
After the first 7 days, the liquidator carries out an assessment, which may involve a subsequent "balance" payment in favor of the depositor.
In such cases, depositors will be informed through the dedicated section on the liquidation of the bank on FITD’s website, of the date from which the repayments subject to the liquidator’s assessment will be issued.
FITD issues the payments through one of its member banks, acting as Agent bank, and its branches. Depositors can go to any of the branches of the Agent bank and receive their money via: i) bank transfer to a current account (different from that held at the liquidated bank); ii) bankers’ drafts; iii) cash withdrawal.
FITD ensures to provide depositors with all necessary information and clarifications on its website, in a dedicated section on the liquidation procedure of the bank and the reimbursement of depositors.
The name of a depositor may not appear in the list available to the Agent bank within the 7-day period. This would occur when the depositor falls within one of the categories for which repayment is deferred by law.
After the first 7 days, the liquidator carries out an assessment, which may involve a subsequent "balance" payment in favor of the depositor.
In such cases, depositors will be informed through the dedicated section on the liquidation of the bank on FITD’s website, of the date from which the repayments subject to the liquidator’s assessment will be issued.
• Joint Accounts
For the reimbursement of joint accounts, deposits are considered proportionally to the number of joint holders. The reimbursement limit for each joint holder is 100,000 euro.
Thus, in the event that two or more depositors have a joint account at the same bank, the maximum coverage will be equal to 100,000 euro for each of the holders.
If a depositor holds a joint account and other accounts at the same bank, the maximum coverage of 100,000 euro applies to the sum of deposits held by that same depositor.
In the case of accounts or products held by two or more depositors, it is assumed that these are allocated equally among all holders, unless otherwise provided.
Thus, in the event that two or more depositors have a joint account at the same bank, the maximum coverage will be equal to 100,000 euro for each of the holders.
If a depositor holds a joint account and other accounts at the same bank, the maximum coverage of 100,000 euro applies to the sum of deposits held by that same depositor.
In the case of accounts or products held by two or more depositors, it is assumed that these are allocated equally among all holders, unless otherwise provided.
• Deferral of reimbursement
Pursuant to Art. 96-bis.2, par. 2 of the Banking Law, in some specific cases the Deposit Guarantee System may defer the reimbursement term of 7 working days. This provision was incorporated in the Statute of FITD in Article 33, par. 10.
The deferred cases are not part of the reimbursements issued in the 7 working days as they are subject to suspension and, if necessary, to subsequent assessments by the liquidator.
FITD may defer reimbursement if:
a) there is uncertainty over the right of the owner to be reimbursed, or the deposit is subject to a court case or before an extra-legal resolution entity whose decision impacts of the right or the amount for reimbursement.
This includes the following cases: the offsetting between credit and debit positions of the depositor; pledged deposits; deposits subject to legal disputes;
b) the deposit is subject to restriction measures imposed by a State or an international organization, while that measure exists;
c) no movement on the deposit has happened in the 24 months preceding the date on which the compulsory administrative liquidation of the bank takes effect. In such case, the reimbursement is done within 6 months of the same date, with the provision that no reimbursement is due if the deposit is under 100 euro.
This is the case of "dormant accounts" defined for the purpose of deposit guarantee by Directive 2014/49 / EU.
d) the amount to reimburse is considered a temporary high balance as per par. 16; the deferment happens only for the amount exceeding 100,000 euro and the reimbursement is done within 6 months from the date on which the compulsory administrative liquidation of the bank takes effect;
e) the reimbursement is in favor of depositors of an EU bank’s branch operating in Italy; in that case, the deadline in par. 7 begins from the date the Fund receives the necessary financial resources from the Deposit Guarantee System of the home country of the branch;
f) the deposit belongs to subjects who perform functions of administration, directorship or control, against whom a case for responsibility is in progress.
The deferred cases are not part of the reimbursements issued in the 7 working days as they are subject to suspension and, if necessary, to subsequent assessments by the liquidator.
FITD may defer reimbursement if:
a) there is uncertainty over the right of the owner to be reimbursed, or the deposit is subject to a court case or before an extra-legal resolution entity whose decision impacts of the right or the amount for reimbursement.
This includes the following cases: the offsetting between credit and debit positions of the depositor; pledged deposits; deposits subject to legal disputes;
b) the deposit is subject to restriction measures imposed by a State or an international organization, while that measure exists;
c) no movement on the deposit has happened in the 24 months preceding the date on which the compulsory administrative liquidation of the bank takes effect. In such case, the reimbursement is done within 6 months of the same date, with the provision that no reimbursement is due if the deposit is under 100 euro.
This is the case of "dormant accounts" defined for the purpose of deposit guarantee by Directive 2014/49 / EU.
d) the amount to reimburse is considered a temporary high balance as per par. 16; the deferment happens only for the amount exceeding 100,000 euro and the reimbursement is done within 6 months from the date on which the compulsory administrative liquidation of the bank takes effect;
e) the reimbursement is in favor of depositors of an EU bank’s branch operating in Italy; in that case, the deadline in par. 7 begins from the date the Fund receives the necessary financial resources from the Deposit Guarantee System of the home country of the branch;
f) the deposit belongs to subjects who perform functions of administration, directorship or control, against whom a case for responsibility is in progress.
• Reimbursement of debt positions
Pursuant to Art. 96-bis.1, par. 5, lett. c) of the Banking Law and Art. 33, par. 11 of the Statute of FITD, in determining the repayable amount, account is taken of "the balance of any debts of the depositor towards the bank, if due on the date in which the compulsory administrative liquidation of the bank takes effect, for the amount in accordance with the law or the applicable contractual provisions".
As part of the data provided to FITD for reimbursement purposes, the bank is required to provide information on those depositors who have liabilities towards the bank.
All positions for which the liability is equal to or greater than 100 euro are subject to assessment by the liquidator for identifying the due amounts and any consequent compensation.
Therefore, the reimbursement of these deposits is deferred (from the 7-day deadline) and carried out depending on the outcome of this assessment.
Example: the liability associated with the deposit can be a mortgage; in this case, the part to be reimbursed may be an installment of the loan due on the date of the liquidation of the bank.
Reimbursement is made for deposits with liabilities of less than 100 euro without the need for deferral, as these are not subject to further assessment by the liquidator.
In the case of joint liabilities, the same rule of joint deposits applies.
A particular type of liability for which there is no deferral of reimbursement is the balance of the credit card issued by the bank in liquidation.
The credit card limit (or their sum in the case of multiple credit cards) is subtracted from the amount to be reimbursed in 7 days, and the balance is settled later.
If, in addition to credit cards, there are also other liabilities, the reimbursement of the depositor is subject to deferral and assessment by the bank's liquidator.
As part of the data provided to FITD for reimbursement purposes, the bank is required to provide information on those depositors who have liabilities towards the bank.
All positions for which the liability is equal to or greater than 100 euro are subject to assessment by the liquidator for identifying the due amounts and any consequent compensation.
Therefore, the reimbursement of these deposits is deferred (from the 7-day deadline) and carried out depending on the outcome of this assessment.
Example: the liability associated with the deposit can be a mortgage; in this case, the part to be reimbursed may be an installment of the loan due on the date of the liquidation of the bank.
Reimbursement is made for deposits with liabilities of less than 100 euro without the need for deferral, as these are not subject to further assessment by the liquidator.
In the case of joint liabilities, the same rule of joint deposits applies.
A particular type of liability for which there is no deferral of reimbursement is the balance of the credit card issued by the bank in liquidation.
The credit card limit (or their sum in the case of multiple credit cards) is subtracted from the amount to be reimbursed in 7 days, and the balance is settled later.
If, in addition to credit cards, there are also other liabilities, the reimbursement of the depositor is subject to deferral and assessment by the bank's liquidator.
• Deposits accounts opened by depositors as collateral for liabilities contracted towards the bank (example: pledged deposits)
In such cases, the deposit (or part of it) is given as collateral to the bank, which is granted exclusive availability, since the guarantee is established through the physical delivery of the document certifying its establishment.
The eligibility for protection by FITD depends on the moment in which the provision that establishes the compulsory administrative liquidation of the bank is issued.
In fact, if the liquidation occurs when the liabilities of the depositor and the guarantee are both outstanding, the deposit cannot be protected by FITD.
If the liquidation takes place when the liability is extinguished but the deposit, although outstanding, has not yet been remitted, this deposit is to be considered reimbursable as it falls in the full availability of the depositor.
Other situations must be carefully assessed on a case-by-case basis by the liquidator to identify the amounts of the deposit still restricted and those reimbursable.
The eligibility for protection by FITD depends on the moment in which the provision that establishes the compulsory administrative liquidation of the bank is issued.
In fact, if the liquidation occurs when the liabilities of the depositor and the guarantee are both outstanding, the deposit cannot be protected by FITD.
If the liquidation takes place when the liability is extinguished but the deposit, although outstanding, has not yet been remitted, this deposit is to be considered reimbursable as it falls in the full availability of the depositor.
Other situations must be carefully assessed on a case-by-case basis by the liquidator to identify the amounts of the deposit still restricted and those reimbursable.
• Deposits subject to legal disputes
Deposits, including those that are the subject to a court case or that are before an extra-legal resolution entity, are not part of the 7-day reimbursement, as they are subject to ad hoc assessments by the liquidator.
Example: deposits part of legal successions; foreclosed deposits; existing, beneficiary and generic inheritances; deposits pertaining to subjects who perform administrative, management and control functions, against whom a liability action has been initiated.
Example: deposits part of legal successions; foreclosed deposits; existing, beneficiary and generic inheritances; deposits pertaining to subjects who perform administrative, management and control functions, against whom a liability action has been initiated.
• Companies without legal entity
Pursuant to Art. 96-bis.1, par.5. lett. a) of the Banking Law and Art. 33, par. 6 of the Statute, "deposits in an account with two or more owners who are possessors of shares in an entity without legal personality, shall be considered as made by one single depositor for the purpose of applying the coverage level”.
Therefore, in the event of compulsory administrative liquidation of a bank in which a company without legal entity and its shareholders hold current account deposits, the coverage limit is calculated by accumulating the deposits of the individual shareholders of the company (for their shares) and those held by the shareholders themselves (both individually and in possible joint accounts).
The individual ownership of a business (sole proprietorship) does not involve the separation of assets between those intended for commercial activities and those of the natural person; therefore, for applying the coverage level, the deposits of the sole proprietorship and the individual are accumulated.
Therefore, in the event of compulsory administrative liquidation of a bank in which a company without legal entity and its shareholders hold current account deposits, the coverage limit is calculated by accumulating the deposits of the individual shareholders of the company (for their shares) and those held by the shareholders themselves (both individually and in possible joint accounts).
The individual ownership of a business (sole proprietorship) does not involve the separation of assets between those intended for commercial activities and those of the natural person; therefore, for applying the coverage level, the deposits of the sole proprietorship and the individual are accumulated.
• Checks (bank and cashier’s checks)
Based on the applicable regulatory provisions (Article 96-bis.1; FITD Statute, Article 33), cashier's checks are eligible for guarantee regardless of the bearer, who must contact the liquidator to obtain reimbursement up to 100,000 euro.
The depositor must give the check to the liquidator who, after carrying out assessments and in the event of a positive outcome, will send to FITD the necessary data to proceed with the reimbursement, within the coverage limit.
If the bearer of the check is a depositor of the bank in liquidation and also has a liability towards the same bank, the reimbursement of the check can only take place after the liquidator carries out assessments aimed at the application of the offsetting between the deposit and the amount of the liability due on the date of liquidation of the bank.
In the case of a bank check, since the bank can no longer make payments, the recipient of the check will have to contact the liquidator.
The depositor must give the check to the liquidator who, after carrying out assessments and in the event of a positive outcome, will send to FITD the necessary data to proceed with the reimbursement, within the coverage limit.
If the bearer of the check is a depositor of the bank in liquidation and also has a liability towards the same bank, the reimbursement of the check can only take place after the liquidator carries out assessments aimed at the application of the offsetting between the deposit and the amount of the liability due on the date of liquidation of the bank.
In the case of a bank check, since the bank can no longer make payments, the recipient of the check will have to contact the liquidator.
• Temporary high balances
The discipline on high temporary balances is contained in the Banking Law (Art. 96-bis.1, par. 4), in Art. 33, paragraphs 16 and 17 of the FITD Statute.
Temporary high balances are the deposits of natural persons to which protection over 100,000 euro is granted for a period of 9 months following their accreditation or when the amount becomes available, if related to specific types of deposits, such as those resulting from: a) operations of transfer or conferring rights to real estate earmarked for dwelling; b) divorce, retirement, end of work relationship, disability or death; c) payment of insurance premiums, compensations or indemnities, relating to damages considered by law as crimes against the person or for unjust detention.
The reimbursement of temporary high balances for the part exceeding 100,000 euro is subject to deferral and is done within 6 months from the date on which the compulsory administrative liquidation of the bank takes effect (Statute of FITD, Art. 33, par. 10, lett. d).
For reimbursement, depositors must submit a specific request to the bank liquidator within 60 days from the date on which the compulsory administrative liquidation takes effect.
The liquidator, having received such request from the depositor, carries out the assessment and transmits the request and related documentation to the FITD for its decision. The Fund informs the depositor of the outcome of the assessment and the final decision.
In any case, if the depositor also has liabilities, the repayment of temporary high balances cannot take place before the liquidator has assessed the position.
Temporary high balances are the deposits of natural persons to which protection over 100,000 euro is granted for a period of 9 months following their accreditation or when the amount becomes available, if related to specific types of deposits, such as those resulting from: a) operations of transfer or conferring rights to real estate earmarked for dwelling; b) divorce, retirement, end of work relationship, disability or death; c) payment of insurance premiums, compensations or indemnities, relating to damages considered by law as crimes against the person or for unjust detention.
The reimbursement of temporary high balances for the part exceeding 100,000 euro is subject to deferral and is done within 6 months from the date on which the compulsory administrative liquidation of the bank takes effect (Statute of FITD, Art. 33, par. 10, lett. d).
For reimbursement, depositors must submit a specific request to the bank liquidator within 60 days from the date on which the compulsory administrative liquidation takes effect.
The liquidator, having received such request from the depositor, carries out the assessment and transmits the request and related documentation to the FITD for its decision. The Fund informs the depositor of the outcome of the assessment and the final decision.
In any case, if the depositor also has liabilities, the repayment of temporary high balances cannot take place before the liquidator has assessed the position.
• Deposits of banks, other intermediaries and public entities in their own name and on behalf of third parties
Art. 33, par. 3, lett. a) of the Statute of FITD, in line with Art. 96-bis.1, par. 2, lett. a) of the Banking Law, provides that deposits held by banks, other financial intermediaries (Example: SIM, SGR) and public entities "in their own name and for own account" are not eligible for reimbursement.
However, it is possible to consider eligible for guarantee the underlying depositors of the accounts held in the bank by the intermediaries in their own name (but on behalf of third parties), only under certain conditions, namely: identification of these subjects by the bank, in compliance with the provisions on anti-money laundering; calculation of the relative amounts for determining the contributions due to FITD in accordance with the law; supervision by the competent authorities of the intermediaries holding the account.
However, it is possible to consider eligible for guarantee the underlying depositors of the accounts held in the bank by the intermediaries in their own name (but on behalf of third parties), only under certain conditions, namely: identification of these subjects by the bank, in compliance with the provisions on anti-money laundering; calculation of the relative amounts for determining the contributions due to FITD in accordance with the law; supervision by the competent authorities of the intermediaries holding the account.
