Clarification

In this section, the Interbank Deposit Protection Fund aims at providing interpretative clarification on certain specific aspects regarding deposit guarantee.

Joint Account Protection

Certificates of deposits

Ciphered accounts

Liquidation and reimbursement

    Joint Account Protection

The Interbank Deposit Protection Fund would like to clarify that the guarantee on "joint accounts" is per depositor, as provided for by Articles 1 and 7 of the Directive 94/19/EC and by Article 96-bis of the Italian Banking Law (Legislative Decree 1° September 1993, n. 385).

The maximum level of coverage is 103,291.38 euro for each depositor, as stated in Article 27 of the FITD Statutes.

Therefore, in the event that two or more depositors have only one joint account with the same bank, the maximum guarantee to be applied is 103,291.38 euro for each depositor.

Whether a depositor has both a joint account and other single accounts in his/her name with the same bank, the coverage limit of 103,291.38 euro shall apply to the total amount of the various accounts he/she has with that bank. In this regard, Article 8 of Directive 94/19/EC establishes that a joint account shall be divided equally amongst the depositors, in the absence of special provisions.

The interpretation given by the Fund was confirmed by an official letter of the Bank of Italy sent on 15th November 2004, which was also published in the “Gazzetta Ufficiale della Repubblica Italiana” (Official Gazette of the Italian Republic).

    Certificates of deposits

The Interbank Deposit Protection Fund would like to clarify whether certificates of deposit are guaranteed and to what extent.

Given the exclusion from protection of “bearer deposits and other funds reimbursable to bearer” as per article 27, paragraph 2, letter a) of the FITD Statutes, the present clarification only concerns nominative certificates of deposit.

Clarification is based on both legal and technical reasons.

On the one hand, Article 12, paragraph 6 of the 1993 Banking Law states that banks may issue registered and bearer certificates of deposit in order to rise funds.

In addition to this, the prudential regulations issued by the Bank of Italy regulate in Title V, chapter 3, section III the specific characteristics that a certificate of deposits shall have. In particular, these instruments are required to provide all the essential data concerning the issuing bank as well as other information like the nominal value of the certificate and all the elements to determine both remuneration and repayment procedures.

There is no doubt that the Banking Law and the prudential regulations consider the certificates of deposit as a fund raising instrument similar to a bank deposit, which entitles its holder to both reimbursement and the agreed remuneration.

As far as regards the technical aspects, reference is to FITD Glossary for the calculation of the reimbursable funds. The Glossary includes certificates of deposits in the aggregate “amount of repayable funds” but not in the aggregate “amount of funds excluded from protection” except for such categories of depositors as those under Article 27, paragraph 2 of the FITD Statutes (the exclusions). 

 In concluding, nominative certificates of deposits, as fund raising instruments similar to repayable deposits, are covered by the guarantee provided by FITD.

    Ciphered accounts

The Interbank Protection Fund would like to clarify that ciphered accounts, which are bank accounts where the name of the holder or depositor is replaced by a number, are covered by the same guarantee applied to traditional nominative accounts, provided that they can be officially and documented referable to the name both of the account holder and of the beneficiary.

    Liquidation and reimbursement

Compulsory administrative liquidation of a bank is regulated by Title VI, section III of the Banking Law (BL).

As provided for by Article 80, compulsory administrative liquidation of a troubled bank is ordered by the Minister of the Treasury who, acting on a proposal from the Bank of Italy, may issue a decree revoking the authorization to engage in banking and ordering the liquidation procedure. Liquidation proceedings are carried out by the liquidator(s) appointed by the Bank of Italy as per Article 81 of the BL.

The assessment of liabilities is regulated by Article 86. According to this provision, within one month of their appointment the liquidators shall notify each creditor, by registered letter with acknowledgment of receipt, of the amounts payable to each as they appear in the accounting records and documents of the bank. A similar notice shall be sent to persons appearing to hold property rights with respect to assets and financial instruments in the bank’s possession connected with services referred to in Legislative Decree 58 of 24 February 1998 and to customers entitled to the restitution of such financial instruments.

Within fifteen days of receipt of the registered letter, the creditors and holders of rights referred previously may present their claims, accompanied by supporting documentation, to the liquidators.

Within sixty days of the publication of the liquidation decree in the Gazzetta Ufficiale della Repubblica Italiana (Official Gazette of the Italian Republic) the creditors and holders of rights who have not received any notice shall request the liquidators, by way of a registered letter with acknowledgment of receipt, to allow their claims and restore their assets, presenting documents which prove the existence, nature and extent of their rights.

Within thirty days from the expiry of the sixty days limitation period, the liquidators shall present to the Bank of Italy, after consulting the superseded directors of the bank, the list of admitted creditors and the amounts of the claims allowed for each, indicating the existence and order of rights of preference. Moreover, the liquidators shall present the lists of the holders of rights and of the persons whose request for allowance of their claims has been denied.

Within the same time limit, the liquidators shall file the lists of preferred creditors and holders of rights, as well as of the persons belonging to the same categories whose request for allowance of their claims has been denied, with the clerk of the court of the place where the bank has its registered office.

The liquidators shall notify their decision without delay to those whose request for allowance of their claims has been denied in whole or in part.

Once all these acts have been completed, the statement of liabilities shall be enforceable.