When a bank is no longer in a position to pay back customer deposits, e.g. in the event of a bankruptcy, customer deposits are, except for a limited number of exceptions laid down in law, covered by a deposit guarantee.
In Luxembourg, the Fonds de garantie des dépôts Luxembourg (FGDL, Luxembourg Deposit Guarantee Fund) is in charge of reimbursing depositors. The maximum amount covered by the guarantee is of EUR 100,000 per person and per bank. This amount may, in specific cases, be higher.
Financial instruments such as securities held on behalf of customers are however covered by another mecanism, the Système d’indemnisation des investisseurs Luxembourg (SIIL, Investor Compensation Scheme Luxembourg). It should be noted that no claim can be covered by both the FGDL guarantee and the SIIL guarantee at the same time.
Detailed information on the guarantee is available on the FGDL website.
My bank has send me a depositor information sheet. What to do?
Once a year, Luxembourg banks must provide their customers with a fact sheet describing the officially recognised Luxembourg deposit guarantee scheme. Said letter informs you that this is the FGDL, an établissement public (public body) whose mission is the repayment of deposits under the legal conditions following the failure of a Luxembourg bank. The FGDL is a distinct and separate entity from your bank, which only has access to your customer files in the event of a bankruptcy of your bank. The FGDL does not exchange data about you with your bank and does not transmit information to your banker in normal circumstances.
The content and format of the depositor information sheet are set by Luxembourg legislation in the ambit of the European harmonisation of deposit guarantee schemes. The letter specifies the amount of the deposit guarantee, the application to different accounts held by the same holder, the deadline for compensation, as well as the contact details of the FGDL. The dispatch of this letter is not related to any change in the level of protection of your deposits or to a change to the situation of your bank. The letter is a simple legal information, on which you do not need to take action. It is therefore not necessary to reply to your bank or to contact the FGDL after having received this standard informational dispatch.
For any questions relating to your banking relationship (e.g. change of address, closure of your account, etc.) please directly contact your banker.