Belgian banks might have to dig deeper

There is a chance that Belgian banks will have to put almost 1.4 billion euros extra on the table for the deposit guarantee fund for the Belgian savers. This could be the result of a bill proposed by Finance Minister Vincent Van Peteghem (CD&V) that De Tijd was able to read.

In Europe, savings are protected up to EUR 100,000 per person and per bank. If a bank fails, the Guarantee Fund for Financial Services is activated to compensate the affected savers. This fund gets its money from an annual contribution from the banks.

Because the system needs revision, Van Peteghem prepared a bill. The most striking change is the target amount for deposit protection imposed on the sector. Van Peteghem wants to raise the previously agreed percentage of 0,8 per cent to 1.8 per cent of the covered deposits. If the bill passes, the federal government expects the banks to make an extra effort of 1.38 billion. That target should be reached in July 2024.

The Constitutional Court previously ruled that the Belgian legislator may go further than what was agreed in Europe.

The sector federation Febelfin is not happy with the draft bill and is particularly frustrated by the 1.8 percent. it is not only more than the EU wants, but also more than in the neighbouring countries, it sounds. In the Wetstraat, most parties, except perhaps for the Liberals, are not averse to an extra effort from the banks.

© BELGA PHOTO LAURIE DIEFFEMBACQ - Vice-prime minister and minister of Economy and Work Pierre-Yves Dermagne, Minister of Agriculture and SME's David Clarinval, Vice-prime minister and Mobility Minister Georges Gilkinet and Vice-prime minister and Finance Minister Vincent Van Peteghem pictured during a press conference of the Federal Government regarding the measures taken to reduce the energy costs, Tuesday 15 March 2022 in Brussels.