The covered deposits at the end of the first semester...
The covered deposits at the end of the first semester 2017
At present, FGDB guarantees the deposits opened with credit institutions of all natural persons, as well as those of legal persons, regardless of the size of the latter.
If the deposits with a bank become unavailable or the bank is subject to a resolution measure, each depositor is fully guaranteed for any amount less than or equal to 100,000 euro, in RON equivalent, and those with deposits larger than this ceiling benefits from the coverage of 100,000 euros.
According to the law governing the activity of the FGDB, the deposit is any credit balance, including due interest, resulted in funds held in an account or transitory situations deriving from current banking transactions such as term deposits, current accounts, savings accounts, card accounts, joint accounts and similar products.
The categories of deposits excluded from guarantee are specified in Annex no. 1 to the Law no. 311/2015 on Deposit Guarantee Schemes and the Bank Deposit Guarantee Fund.
At the end of the first half of 2017, over 80% of the total value of deposits with 28 credit institutions authorized in Romania by the National Bank of Romania was covered by FGDB.
On 30 June 2017, the value of eligible deposits amounted to RON 244.5 billion, up with RON 3.3 billion to their level as at the end of 2016, due to the positive evolution of population deposits below the coverage ceiling.
The FGDB’s covered deposits represent 66.1% of the value of eligible deposits, i.e. RON 161.7 billion, exceeding by over RON 3 billion the level at the end of 2016.
Thus, during the first six months of 2017, the eligible deposits of the natural persons increased by 2.8%, reaching RON 151.9 billion as at June 30, 2017. Similar to the previous periods, the most significant advance was recorded again by RON-denominated deposits of values below the coverage ceiling (the equivalent in RON of 100,000 euros), which have a very high share in the total eligible deposits of the natural persons, i.e. 81%.
The covered deposits represent approximately 90% of the total value of the population’s eligible deposits and amounted to RON 135.8 billion on 30 June 2017, with a half-year increase of RON 3.8 billion.
Unlike the natural persons depositors, for the legal person sector, during the first half of 2017 there was a 0.9% decrease in the value of eligible deposits to the level of RON 92.6 billion. This reduction was due to the decrease in the value of the RON-denominated deposits of resident legal entities.
On June 30, 2017, the covered deposits of the guaranteed legal persons amounted to RON 25.9 billion, representing only 27.9% of the total amount of eligible deposits in this category, a significantly lower share than the population’s due to the fact that the guaranteed legal persons are mainly represented by companies that usually hold amounts over the coverage ceiling.
The ratio between the resources for guaranteeing the deposits and the covered deposits of natural and legal persons was 3.4% as at 30 June 2017, exceeding more than four times the minimum level of 0.8% imposed on the European Union Member States as a target to reach by year 2024.
Deposit data may be found on FGDB’s website in the Statistics section.
August 2, 2017