Insurance for savers
A glance at the press gives us headlines like: “world trade loses almost half a point”, “the fall in the car market consolidates”, “the European manufacturing industry experiences its biggest contraction since 2012”.
These reports of industrial and commercial activity are complemented by the actions of the European and American central banks, both extending the policy of low interest rates, and the recommendations of the Bank of Spain, calling for more bank mergers, including operations with foreign banks.
They are all headlines today, and of course, we who are the generation that has lived through the longest, most acute and global crisis in the short history of capitalism, cannot help but remember the years of fear of the collapse of the financial system and the bailout of the banks.
To dispel fears, it is worth remembering that Spain has a system of guarantees on deposits, which is known as the Deposit Guarantee Fund of Credit Institutions (FGDEC or FGD).
This Fund originated in 1977, although its current regulation dates from 2011 (RDL 16/2011), when the existing funds (the savings bank fund, the banking establishment fund and the credit cooperative fund) were liquidated to constitute a single fund for all entities.
It has its own legal personality, with full capacity to carry out its objectives, under private law. It is managed by a management committee composed of 11 members, 1 appointed by the Ministry of Economy, 1 by the Ministry of Finance, 4 by the Bank of Spain, and 5 by credit institutions. Its accounts are submitted annually to an independent audit and can be consulted at www.fgd.es
It covers cash deposits (current accounts, time deposits, etc.) denominated in euros or foreign currency, up to a limit of €100,000 per depositor and credit institution. It covers both the principal and accrued but unpaid interest up to the date the institution's insolvency triggers the enforcement of the guarantee.
It also covers Securities Deposits, that is, traded securities that have been entrusted to the credit institution for deposit or registration, also with a limit of 100,000 euros, being a guarantee independent of the previous one.
In other words, the money and stocks we have in a participating bank are guaranteed by the Fund, so that if that bank were to go bankrupt we would recover them, up to an amount of 100,000 euros for the money, and 100,000 euros for the securities.
It is primarily funded by contributions from participating credit institutions, which by law include all Spanish institutions (except the ICO) and, in certain cases, branches of credit institutions from non-EU member states. EU banks operating in Spain guarantee deposits with funds they have established for this purpose in their home countries.
If you require our assistance to obtain more information or have any questions, please contact us via email at ambit@ambitassessor.com or at our offices.
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A graduate in Economics from the University of Barcelona, he is also a Certified Actuary, Real Estate Agent, and Insurance Broker.
He furthered his training with courses in taxation, business valuation, and credit management offered by the College of Economists of Catalonia and the Center for Financial Studies (CEF).
In 2000, he became the managing partner of the firm, and since 2011, he has also been responsible for the Finance Department.
For five years, while already a member of the management team at Àmbit Assessor, he also held the positions of Deputy General Manager and Finance Director at Alco Grupo Empresarial.
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