Document Type

Case Study

Case Series

Account Guarantee Programs

JEL Codes

G01, G28


On October 7, 2008, as the European Union (EU) coordinated its members’ response to the Global Financial Crisis (GFC), its Economic and Financial Council (ECOFIN) recommended that member states raise their deposit-insurance coverage to at least EUR 50,000 (USD 67,000). Germany and Austria went further and adopted an unlimited guarantee of deposits. In response, Slovenia announced its Unlimited Deposit Guarantee on October 8, 2008. Slovenia’s national assembly adopted the program on November 11, 2008, effective November 20. The Bank of Slovenia (BoS) administered the program, as it had Slovenia’s existing deposit-insurance scheme. When an insured bank failed, fees were imposed on surviving banks to cover the first EUR 22,000 per depositor, with the government covering amounts over EUR 22,000 with taxpayer funds. Following an EU directive in 2009, Slovenia increased the amount for which banks were responsible to EUR 50,000 per depositor. The Unlimited Deposit Guarantee expired on December 31, 2010, after which a limit of EUR 100,000 per depositor came into effect. Scholars estimated that the BoS covered USD 24.4 billion in deposits in 2010, although the BoS made no payouts under the Unlimited Deposit Guarantee.

Date Revised