The deposit guarantee scheme in a European perspective
European Securities, January 2010.
Since 1994, pursuant to the Directive 1994/19/EC regarding deposit guarantee schemes, each of the member states of the European Union is obliged to have one or more deposit guarantee schemes and, save as otherwise provided, no credit institution (i.e. a bank) in a member state is authorized to receive deposits unless it is a member of a deposit guarantee scheme. This Directive and the obligation to have a deposit guarantee scheme have been adopted and introduced in view of the Treaty Establishing the European Economic Community adopted on 25 March 1957 (now called the Treaty Establishing the European Community, hereinafter the "Treaty"). In this article, we will first set out the reasoning and the main provisions of the Directive and address the recent developments and studies to further improve the Directive. Subsequently, we will describe the two most frequently used schemes by member states, i.e. the 'fund scheme' and the 'apportionment scheme', and briefly describe the Dutch deposit guarantee scheme, including some recent proposals to improve this scheme.