Common European deposit insurance scheme Banking supervision in the European Union

The recast Directive 2014/49/EU of the European Parliament and of the Council of 16 April 2014 further harmonised the requirements for national deposit guarantee schemes (DGSs). Since then, all EU countries have been required to set up deposit guarantee schemes funded by banks. In the event that a depositor needs to be compensated, bank deposits of up to €100,000 are guaranteed. Germany already meets this requirement through its pre-existing statutory compensation schemes.

The Directive stipulates that, by 3 July 2024 , the available financial means of the DGS must reach a target level of 0.8% of the amount of covered deposits. Covered deposits are defined as any deposits not exceeding the repayable coverage amount of up to €100,000 per depositor and per bank. Moreover, the repayment period associated with a compensation event has been gradually reduced from twenty to seven working days within the EU. The harmonised requirements are designed to further strengthen depositors' confidence in banks and to enhance customer protection.