Belgium’s deposit guarantee fund is two to three times larger than those in the rest of the EU, according to a report by L’Echo on Tuesday based on European Banking Authority (EBA) data.
Each year, the EBA releases data on the deposit guarantee systems of EU member states. These funds are used to reimburse bank customers up to €100,000 per customer, per bank, in the event of a bank failure, with higher amounts possible in certain cases. The funds are funded by banks, which allocate a portion of their deposits annually.
Significant differences exist among Member States. While the €100,000 protection threshold is standardised across Europe, the coverage ratio by guarantee funds varies beyond the legal minimum of 0.8%. In Belgium, the Guarantee Fund, comprising all banks, amounted to €5.7 billion at the end of 2024, covering €357.9 billion in deposits with a coverage ratio of 1.6%.
This is the highest level in the eurozone, excluding Estonia and Latvia, which have the smallest banking systems in the currency area.
Additionally, Belgium’s target ratio has been increased to 1.8% of deposits, driven by former Finance Minister Vincent Van Peteghem, to bolster savers' confidence. This target is set to be reached by July 2025.
