Along with the supervisory activities and the lender-of-last-resort function, deposit guarantee is one of the basic elements of the safety-net, which is aimed to the stability of the banking system.

Through deposit guarantee, the social function of savings and the monetary function of bank intermediation are recognized and supported, amd in the event of a bank failure, traumatic effects on depositors may be avoided.

The Directive 94/19/EU on deposit guarantee schemes provides for a minimum level of protection equal to 20.000 Euro per depositor.

The Italian legislator implemented the Directive with the Legislative Decree n. 659 of 4 December 1996 and provided for a maximum level of guarantee equal to 103.291,38 Euro per depositor.

The Interbank Deposit Protection Fund also compensates, up to the limits set forth in the Statutes, the depositors of members' foreign branches in European Union Countries. Moreover, FITD protects depositors of branches in Italy of EU and non-EU banks, provided that they are members of the Fund.

According to the Statutes of the Fund (Article 27, paragraph 1), pursuant to the Legislative Decree n.659/96, claims eligible for reimbursement are those relating to repayable funds acquired by the members, in Euro and in foreign currency, in the form of deposits or in other forms, as well as banker’s drafts and equivalent instruments.

Pursuant to Article 27, paragraph 2 of the Statutes of the Fund, the following are excluded from protection:

• bearer deposits and other funds reimbursable to bearer;

• bonds and credits deriving from acceptances, promissory notes and security transactions;

• the bank’s equity capital, reserves and other capital elements, calculated pursuant to the laws in force;

• deposit deriving from transactions regarding a conviction for the crimes pursuant to Articles 648-bis and 648-ter of the Penal Code;

• the deposits of government departments, regional, provincial and municipal governments and other local public bodies;

• deposits made by banks in their own name and for their own account, as well as the credits of banks;

• the deposits of the financial companies indicated in Article 59, paragraph 1(b) of the Italian Legislative Decree n. 385 of 1 September 1993 (the Banking Law), of insurance companies, of collective investment undertaking , and of other companies belonging to the same banking group;

• the deposits of members of the corporate organs and the top management of the bank or of the holding, even if such deposits are made through nominees;

• the deposits, including those made through nominees, of shareholders holding at least 5 percent of the member’s equity capital;

• deposits in respect of which the depositor has obtained from the member bank, on a personal basis, rates or terms which have played a part in damaging the financial position of the bank, as determined by the commission of liquidators.

Protection is offered to the so-called "unaware (or not sophisticated) depositor", who, having no access to needed information, may not be able to evaluate the risk position of the financial institution where his or her deposits are kept.

• Clarification