What would become of your precious savings if your bank was declared bankrupt tomorrow? These customers have just experienced it …
Who would think of waking up one morning and discovering that his bank, that he estimated solid and the most likely to protect his precious savings, put the key under the door? No way to withdraw money from the distributor or consult your online balance. Your bank advisor no longer answers the phone. Panic seizes you: have your savings in a lifetime gave rise to smoke?
Unfortunately, this is the nightmare that 1300 customers of a European bank recently lived. Specializing in commercial real estate, it was declared insolvent in early March by the local court. She was unable to repay her customers’ deposits after being weighed down by the real estate crisis following the COVVI-19 pandemic. A real earthquake for concerned savers that is mainly and logically question about the existing protections and devices in Europe, and more particularly in France. What happens in the event of bankruptcy of a bank?
Good news, since a 2014 European directive, bank deposits have been guaranteed up to 100,000 euros per account holder and per establishment. This “safety net” automatically plays in the event of bankruptcy: within 7 working days, a national compensation fund is responsible for repaying injured customers.
Second good news for your savings, in France, a specific system had already been created before 2014. It is the deposit and resolution guarantee fund (FGDR) which has been in controllers since 1999, as recalled by Bercy on its website and on FGDR website. Funded by compulsory banks’ contributions, he can even intervene preventively, before a bank is declared bankrupt.
Thus, in the event of a big glitch, customers are contacted directly by the FGDR without having any approach to do. An online secure space then allows them to collect their money by transfer or by check. This fund guarantees your investments on current account, booklet or savings plans up to 100,000 euros. Same thing for booklets A, LEP or LDDS via a state guarantee.
The ceiling can even be noted at € 500,000 more for “exceptional deposits” (donation, real estate sale, dismissal allowances, bodily injury …). Enough to see … In Germany, the same device exists via the warranty funds for national and regional deposits. It is this “parachute” that will allow 1,100 customers of the Bankhaus Obotritia GmbH Bank from Munich to recover their assets, also capped at 100,000 euros per person.
The bank is not part of an additional system, doubt remains for the higher sums and other types of placement. Let us recall that certain investments are not covered by this European fund: this is the case, for example, investments in cryptocurrencies.