Deposit guarantee scheme
The fundamental objectives of the deposit guarantee scheme are to protect investors and to maintain their confidence in the banking system.
A sound and effective deposit guarantee scheme is one of the important conditions for the maintenance of financial stability in a country.
The area of deposit guarantee schemes has been harmonised at the European Union level since 1994, when Directive 94/19/EC of the European Parliament and of the Council on deposit-guarantee schemes was adopted. The directive was amended in March 2009 in response to the financing crisis (by Directive 2009/14/EC). The amount up to which deposits at EU Member State banks are guaranteed was standardised, first up to an amount of at least EUR 50,000 and then up to an amount of EUR 100,000.
The new Directive 2014/49/EU of the European Parliament and of the Council on deposit guarantee schemes has been in force since July 2014.
This maintains the deposit guarantee up to EUR 100,000, compared with the previous legislation it gradually shortens the deadlines for the repayment of guaranteed deposits from 20 days to seven days, and further increases the requirements to inform depositors with regard to the guarantee before the conclusion of a contract in connection with a deposit.
The new directive additionally sets out a requirement for Member States to establish a separate guarantee fund, which must have at its disposal sufficient assets to provide for the smooth repayment of guaranteed deposits.
Directive 2014/49/EU was transposed into the Slovenian legal system by the Deposit Guarantee Scheme Act (Official Gazette of the Republic of Slovenia, No. 27/16; hereinafter: the ZSJV), which entered into force on 12 April 2016. Total guaranteed deposits amounted to EUR 17.06 billion as at 31 December 2016.
Deposit guarantee scheme in Slovenia
The deposit guarantee scheme in Slovenia is operated by the Bank of Slovenia. This means that the Bank of Slovenia:
- establishes and manages the deposit guarantee fund,
- collects the banks’ regular and ad hoc contributions to the deposit guarantee fund, and enters into agreements on other forms of financing the fund,
- puts in place, vets and updates the procedures and arrangements for the repayment of coverage of guaranteed deposits (including stress testing),
- conducts activities for using the deposit guarantee fund to finance measures of bank recovery or compulsory dissolution, i.e. measures that ensure that depositors retain access to guaranteed deposits,
- supervises members of the deposit guarantee scheme (all banks and savings banks established in Slovenia, and branches of third-country banks included in the system in Slovenia) with regard to their fulfilment of the obligations of membership.
In connection with the exercise of the powers and tasks related to the deposit guarantee scheme, the Bank of Slovenia works with the deposit guarantee authorities of other EU Member States, the resolution authorities and other relevant authorities of EU Member States.
For more on the functioning of the current deposit guarantee scheme, see FAQs.