Governing bodies

The Fund will be governed and administered by a Management Commission made up of eleven members, one representative from the Ministry of Economy and Business, one from the Ministry of Finance, four designated by the Bank of Spain and five by the representative associations of the participating credit institutions, in the terms provided by regulation.

The representative of the Ministry of Economy and Business will be the Secretary General of the Treasury and International Financing, who will hold the Vice-Presidency of the Management Commission and will replace the President in his duties in the event of vacancy, absence or illness.

The representative of the Ministry of Finance will be the General Comptroller of the State.

The representatives of the Bank of Spain will be appointed by its Executive Commission. One of them will be the Deputy Governor who will hold the Presidency of the Commission.

The representatives of the participating entities will be designated three by the representative associations of banks, one by those of savings banks and one by those of Credit Cooperatives, in the terms provided by regulation.

Member entities

All Spanish credit institutions will obligatorily belong to the Credit Institution Deposit Guarantee Fund.

The obligation established in the previous paragraph will not apply to the Official Credit Institute.

The Bank of Spain will inform the European Banking Authority, as soon as possible, of the accession of a credit institution to the Fund.

The branches of credit institutions from non-member states of the European Union that operate in Spain will be incorporated into the Fund in the cases and in the manner determined by regulation. Notwithstanding the foregoing, when these entities offer a level of protection to depositors equal to or higher than that established in this Royal Decree-Law and in its implementing regulations, their non-adherence to the Fund may be ordered.

Entities adhered to the FGD as of May 12, 2022:.

Object and legal personality

The FGD has legal personality, with full capacity to carry out its purposes, under private law.

Definition of guaranteed deposits and coverage limits

Credit balances held in accounts will be considered guaranteed deposits, including funds from temporary situations due to traffic operations and nominative certificates of deposit that the entity is obliged to return under the applicable legal and contractual conditions, regardless of the currency in which they are nominated and provided that they are established in Spain or in another Member State of the European Union.

The guarantee will be applied per depositor, whether natural or legal person, and regardless of the number and type of deposits in which the same entity appears as the owner. This limit will also apply to depositors holding deposits exceeding the guaranteed maximum.

The fund originally covered 15,000 euros per depositor, which was extended to 20,000 euros from 2000 and 100,000 euros from October 10, 2008.

Financing of funds

The fund is financed with contributions from the entities integrated into them. The banks initially contributed an amount equivalent to 1.2‰ of their deposits as of December 31. In 1989, the bank's contribution rose to 2‰ of eligible assets. In an amendment to LP/90 the contribution was set at 2.5‰.

These contributions are deposited into the account held by the FGD in the Bank of Spain from the closing date of each financial year in one or more disbursements, in view of the needs of the Fund, and within the deadlines set by the management commission.

If the assets of a fund reach a sufficient amount to fulfill its purposes, the Ministry of Economy and Business, at the proposal of the Bank of Spain, may agree to reduce the contributions. In any case, these contributions will be suspended when the equity fund not committed to operations related to the purpose of the FGD equals or exceeds 1% of the deposits of the affiliated entities.

Intervention process

When a bank has financial problems, the Bank of Spain urges it to resolve them with new contributions from previous partners or new ones.

In the event that the bank in question is unable to resolve the problem, the Fund Management Committee (made up of 4 representatives from the Bank and 4 from the Bank of Spain) calls an extraordinary meeting of shareholders to proceed with a capital reduction and a subsequent increase. If approval is not achieved, the entity will follow the legal process of dissolution, with bankruptcy or suspension of payments and the fund will satisfy the amount of deposits up to the maximum established by law.

If approval is achieved, the necessary subscribers are not found and the commission considers that the salvation of the entity is viable, the fund subscribes all or part of the capital, undertakes the necessary tasks to clean it up and tries to return the entity to the private sector through a restricted auction.

The fund's possibilities of action have been strengthened, allowing it, to make it possible to overcome the state of insolvency of the affected bank, to assume losses, loans, guarantees and acquire assets, provided that it contributes to avoiding further damage and is in line with the objectives of sanitation and solvency of the banking system that inspire the creation and operation of the fund.

• - Official website.

• - Deposit guarantee, Bank of Spain.

Governing bodies

The Fund will be governed and administered by a Management Commission made up of eleven members, one representative from the Ministry of Economy and Business, one from the Ministry of Finance, four designated by the Bank of Spain and five by the representative associations of the participating credit institutions, in the terms provided by regulation.

The representative of the Ministry of Economy and Business will be the Secretary General of the Treasury and International Financing, who will hold the Vice-Presidency of the Management Commission and will replace the President in his duties in the event of vacancy, absence or illness.

The representative of the Ministry of Finance will be the General Comptroller of the State.

The representatives of the Bank of Spain will be appointed by its Executive Commission. One of them will be the Deputy Governor who will hold the Presidency of the Commission.

The representatives of the participating entities will be designated three by the representative associations of banks, one by those of savings banks and one by those of Credit Cooperatives, in the terms provided by regulation.

Member entities

All Spanish credit institutions will obligatorily belong to the Credit Institution Deposit Guarantee Fund.

The obligation established in the previous paragraph will not apply to the Official Credit Institute.

The Bank of Spain will inform the European Banking Authority, as soon as possible, of the accession of a credit institution to the Fund.

The branches of credit institutions from non-member states of the European Union that operate in Spain will be incorporated into the Fund in the cases and in the manner determined by regulation. Notwithstanding the foregoing, when these entities offer a level of protection to depositors equal to or higher than that established in this Royal Decree-Law and in its implementing regulations, their non-adherence to the Fund may be ordered.

Entities adhered to the FGD as of May 12, 2022:.

Object and legal personality

The FGD has legal personality, with full capacity to carry out its purposes, under private law.

Definition of guaranteed deposits and coverage limits

Credit balances held in accounts will be considered guaranteed deposits, including funds from temporary situations due to traffic operations and nominative certificates of deposit that the entity is obliged to return under the applicable legal and contractual conditions, regardless of the currency in which they are nominated and provided that they are established in Spain or in another Member State of the European Union.

The guarantee will be applied per depositor, whether natural or legal person, and regardless of the number and type of deposits in which the same entity appears as the owner. This limit will also apply to depositors holding deposits exceeding the guaranteed maximum.

The fund originally covered 15,000 euros per depositor, which was extended to 20,000 euros from 2000 and 100,000 euros from October 10, 2008.

Financing of funds

The fund is financed with contributions from the entities integrated into them. The banks initially contributed an amount equivalent to 1.2‰ of their deposits as of December 31. In 1989, the bank's contribution rose to 2‰ of eligible assets. In an amendment to LP/90 the contribution was set at 2.5‰.

These contributions are deposited into the account held by the FGD in the Bank of Spain from the closing date of each financial year in one or more disbursements, in view of the needs of the Fund, and within the deadlines set by the management commission.

If the assets of a fund reach a sufficient amount to fulfill its purposes, the Ministry of Economy and Business, at the proposal of the Bank of Spain, may agree to reduce the contributions. In any case, these contributions will be suspended when the equity fund not committed to operations related to the purpose of the FGD equals or exceeds 1% of the deposits of the affiliated entities.

Intervention process

When a bank has financial problems, the Bank of Spain urges it to resolve them with new contributions from previous partners or new ones.

In the event that the bank in question is unable to resolve the problem, the Fund Management Committee (made up of 4 representatives from the Bank and 4 from the Bank of Spain) calls an extraordinary meeting of shareholders to proceed with a capital reduction and a subsequent increase. If approval is not achieved, the entity will follow the legal process of dissolution, with bankruptcy or suspension of payments and the fund will satisfy the amount of deposits up to the maximum established by law.

If approval is achieved, the necessary subscribers are not found and the commission considers that the salvation of the entity is viable, the fund subscribes all or part of the capital, undertakes the necessary tasks to clean it up and tries to return the entity to the private sector through a restricted auction.

The fund's possibilities of action have been strengthened, allowing it, to make it possible to overcome the state of insolvency of the affected bank, to assume losses, loans, guarantees and acquire assets, provided that it contributes to avoiding further damage and is in line with the objectives of sanitation and solvency of the banking system that inspire the creation and operation of the fund.

• - Official website.

• - Deposit guarantee, Bank of Spain.