Belgium’s deposit guarantee fund is two to three times larger than comparable schemes in most other European countries, according to figures published on Tuesday by L’Echo, based on data from the European Banking Authority (EBA).
The EBA releases statistics on deposit guarantee schemes across EU member states each year. These funds are designed to reimburse customers up to 100,000 euros in the event of a bank failure. Banks contribute to these funds by setting aside a portion of their deposits.
While the 100,000 euro protection threshold is uniform across the EU, the coverage ratio — the proportion of reserves in the fund relative to total deposits — varies significantly between countries.
The minimum required coverage is 0.8 per cent, but Belgium’s fund reached 1.6 per cent last year — double the EU minimum and the highest in the eurozone after Estonia and Latvia, which are smaller states. The Belgian government has set the bar even higher, requiring banks to reach a coverage ratio of 1.8 per cent by July.
