The Deposit Guarantee Fund (Fondo de Garantía de Depósitos) is a fund financed by retail, cooperative banks and savings Banks (Cajas de Ahorros) as well as the Spanish central bank covering deposits in Spanish Banks.
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History
First set up in 1977 it originally guaranteed deposits up to the equivalent of 15,000 euros per account and account holder. Since 2010 it also plays a crucial role in the management of the FROB.
Characteristics
The FGD is a private legal entity which guarantees the deposits in Spanish banks based in Spain and the European Union. The Fund guarantees up to 100,000 euros (since 10 October 2008). It is financed by an annual 2.5‰ levy on bank assets. The levies are deposited in three separate funds depending on whether the bank is a retail, cooperative or a savings bank. The Bank of Spain together with the Ministry of Finance may reduce the levy if the total assets of the funds reach 1% of the deposits of the respective banks.
Retail Bank deposit Guarantee Fund (FGDEB)
At close 2009 the total assets stood at 2.962 billion euros.
Savings Bank Deposit Guarantee Fund (FGDCA)
At close 2009 the total assets stood at 4.367 billion euros. Savings banks pay 0.1% per year (approx. 500 million euros). In 2009 the fund contributed 1.3 billion euros due to the bankruptcy of CCM, 1.27 billion euros to the FROB and set aside 2.252 billion euros to guarantee depositors funds in Cajasur.
Cooperative Banks Deposit Guarantee Fund (FGDCC)
At close 2009 the total assets stood at 0.675 billion euros.
Other Schemes
Another similar scheme FOGAIN exists to cover losses in investment instruments not considered to be deposits.