Document Type

Case Study

Case Series

Account Guarantee Programs

JEL Codes

G01, G28


On October 10, 2008, Spanish authorities increased the amount insured under its three Fondos de Garantía de Depósitos (FGDs), Spain’s deposit-insurance schemes, from EUR 20,000 to EUR 100,000 (USD 27,200 to USD 136,000). By raising this limit, which was meant to be a permanent change to the banking system, Spanish authorities intended to bolster depositor confidence while exceeding a recent European Union (EU) recommendation to expand such coverage to at least EUR 50,000. Membership in one of the FGDs was compulsory for banks, cajas (savings banks), and cooperatives, each of which had a separate fund. These institutions paid a 0.2% premium on their insured funds, which included a variety of deposit accounts. Although the Spanish banking crisis intensified, the FGDs remained unused by the end of April 2010. In 2011, Spain adopted new deposit-insurance legislation, merging the three FGDs into a single fund.

Date Revised