Deposit insurance Luxembourg



Switzerland has a privately operated deposit insurance system called Deposit Protection of Swiss Banks and Securities Dealers. It guarantees up to CHF 100 000 per bank customer per bank. Membership is compulsory for all banks and securities dealers that are regulated by the Swiss Financial Market Supervisory Authority (FINMA). See the list of members of the Deposit Protection of Swiss Banks and Securities dealers at

It had covered depositors in 1993 in the case of the failure of Spar- und Leihkasse Thun SLT, Thun. The next cases happened in 2007 with the liquidation of AB FIN SA (a securities dealer) in Lugano and with Kauphting (Luxembourg) SA, Geneva branch which was closed on October 9, 2008. Clients of this bank received the payments (at the time up to CHF 30 000 per customer) within three weeks.

For further information see the FAQ at



 Deposit insurance can be in two forms. There is implicit deposit insurance , where there are no stated rules but depositors have assurances implied by governments’ action either through precedence or stated intention. Then there is explicit deposit protection, where the terms and conditions of the scheme are explicitly stated in a statute. The scheme provides a legally enforceable guarantee on all, or a portion of the principal, and in some cases the interest, on a deposit. Under an explicit scheme, the statute states categorically the types of deposits that are covered in the event of bank failures. Table 1 shows countries with explicit and implicit deposit insurance schemes. It should be noted that some countries continuously modify their schemes in response to developments in their financial system.

The types of institutions covered are also influenced by the objectives of the scheme. Where the objective is to protect the entire banking system, as is the case with Jamaica, the legislation requires that all banks be covered. Where the aim is broad, most types of deposits are covered. Table 2 shows the main features (date established, whether the scheme is voluntary or compulsory, types of deposits covered, coverage limit, funding and premium base) of explicit deposit protection schemes in a number of countries.







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