Deposit Protection Scheme
A deposit protection scheme is an external insurance program managed by the central bank in a specific country. In the European Union, the directive for the deposit protection scheme is written by the European Commission. Changes are made by the banking and finance devision of the EC. Member states are allowed to make minimal changes in the working of the scheme but in every country, all banks (and branches of foreign banks) must participate in the protection scheme in order to receive a full banking license.
Participating banks in the deposit protection scheme pay a premium based on the deposits at the individual banks' accounts. Individual customers get a maximum of 100,000 euro protection. If there is more on the account the regular liquidation or bankruptcy procedures start in a secondary recovery procedure.
In Cyprus, FBME Bank was shut down in 2014 and two years later in april 2016, the deposit protection scheme was activated. You can read more about how FBME Cyprus customers receive up to 100.000 Euro here. Due to a total lack of information it is difficult to understand the exact workings of the scheme in Cyprus. Hiring proper assistance is recommended.
The directive for bank failures and the activation of the deposit protection scheme by the European Commission clearly states that member states should pay out customer deposits within 20 days after the state of bank failure is announced. The central bank of Cyprus is very positive in their communication and wants to respond within 7 days. FBME employees however do everything possible to block the administrator from operating his job in a decent way.
Participating banks in the deposit protection scheme pay a premium based on the deposits at the individual banks' accounts. Individual customers get a maximum of 100,000 euro protection. If there is more on the account the regular liquidation or bankruptcy procedures start in a secondary recovery procedure.
In Cyprus, FBME Bank was shut down in 2014 and two years later in april 2016, the deposit protection scheme was activated. You can read more about how FBME Cyprus customers receive up to 100.000 Euro here. Due to a total lack of information it is difficult to understand the exact workings of the scheme in Cyprus. Hiring proper assistance is recommended.
The directive for bank failures and the activation of the deposit protection scheme by the European Commission clearly states that member states should pay out customer deposits within 20 days after the state of bank failure is announced. The central bank of Cyprus is very positive in their communication and wants to respond within 7 days. FBME employees however do everything possible to block the administrator from operating his job in a decent way.