Belgium’s banks are “extremely disappointed” with the government’s decision, as part of budgetary control, to impose yet another increase in their annual contribution to deposit guarantees, Febelfin said in a statement on Wednesday.
The measure “harms the European and international competitiveness of Belgian banks and the role they play in supporting our economy,” the financial sector federation said.
The banks are up in arms over the raising of the guarantee “to an unprecedented level of 1.8% of covered deposits” that will have to be reached by 3 July 2025. “Even if the reform has some merits, such as the setting of a ceiling to be reached, this 1.8% ceiling is unprecedented in Europe, where the standard applied is 0.8%.”
“Today, Belgian banks already make a significant contribution to public finances and to the functioning of the financial system,” Febelfin stressed.
The federation “is asking the government to conduct a thorough reflection on the impact of these budgetary measures on the Belgian banking sector and, by extension, on the country’s economy as a whole.”
The deposit guarantee scheme (SGD) provides for money placed with Belgian banks to be guaranteed up to €100,000 per bank and per person.
