Belgian savings among the best protected in Europe

Belgium’s deposit guarantee fund is two to three times larger than comparable schemes in most other European countries, according to figures published on Tuesday by L’Echo, based on data from the European Banking Authority (EBA).

The EBA releases statistics on deposit guarantee schemes across EU member states each year. These funds are designed to reimburse customers up to 100,000 euros in the event of a bank failure. Banks contribute to these funds by setting aside a portion of their deposits.

2024 economic overview by National Bank of Belgium: Belgian households increase spending

Belgian households increased their consumption in 2024, which led to a reduction in their savings rate, according to the National Bank of...

belganewsagency.eu

While the 100,000 euro protection threshold is uniform across the EU, the coverage ratio — the proportion of reserves in the fund relative to total deposits — varies significantly between countries.

The minimum required coverage is 0.8 per cent, but Belgium’s fund reached 1.6 per cent last year — double the EU minimum and the highest in the eurozone after Estonia and Latvia, which are smaller states. The Belgian government has set the bar even higher, requiring banks to reach a coverage ratio of 1.8 per cent by July.

^{© PHOTO BELPRESS}

Related news

2024 economic overview by National Bank of Belgium: Global economy

Each year, the National Bank of Belgium publishes an annual report reviewing recent economic and financial developments in Belgium, Europe and the...

belganewsagency.eu