Deposit Insurance is an essential feature of the safety net that underpins the stability of the entire banking system.
It is the means whereby the social function of savings and bank intermediation is given protection and traumatic consequences for depositors are avoided in cases of bank failures.
Deposit guarantee protects the unaware depositors who may not have the knowledge background to assess the risk level of the financial instruments into which their savings are put.
Deposit guarantee schemes are regulated by EU Directives and their transposition into national legislations.
Directive 2014/49/EU updates and revises Directive 94/19/EEC which in turn had been amended by Directive 2009/14/EEC. This largely involved the level of coverage and the time for payout of deposits. The provisions were transposed into Italian legislation by Legislative Decree No.30 of 15 February 2016 and published in Official Journal No.56 of 8 March 2016.
The level of coverage is 100,000 euros per depositor and per bank.
The payout time is presently established at 20 working days from the date the compulsory administrative liquidation takes effect. This time period will reduce to 7 working days with the transposition of Directive 2014/49/EU.
Art. 96-bis of 1993 Banking Law establishes that FITD insurance extends to repayable funds acquired by Member banks, in euro or other currencies, in the form of deposits or other forms, as well as bankers drafts and equivalent instruments.