Your money is partly protected by the Protection Fund

Miscellaneous zeka45 August 3, 2016 0 0
A financial institution may also go bankrupt in Belgium. Unfortunately, it does happen occasionally. In 1997 it was for the diamond district of Antwerp known Bank Max Fischer and conclusion. Or think of the slump with Fortis. This raises the question of how well your money is protected in Belgium, certainly the credit crisis now strikes worldwide.

The Protection Fund

To provide you with financial bankruptcies and foreclosures ?? cater partly Protection Fund was founded in Belgium in 1998. This fund is financed by credit institutions and investment firms and is led by a committee with representatives from governments, credit institutions and investment firms. Its secretariat is located in the National Bank of Belgium, the NBB.

What settings fall within the scope of the Protection Fund?

Through the Protection Fund is a statutory obligation, under certain conditions, individual savers and investors can obtain a financial contribution, if one of the following settings is lacking or in the worst case go bankrupt:
  • A credit institution such as a bank, savings bank or securities firm,
  • A brokerage firm, and
  • An investment firm, as an asset management company or placing of orders in financial instruments and management companies.

The list of participants of the Banking, Finance and Insurance Commission, CBFA, you can format or the institution where you do business with, part of the Protection Fund. It never hurts to check with your bank on any financial guarantee he falls. With registered head offices in Belgium, the institution will normally fall under the Belgian scheme. A branch registered in another EU country will be governed by the law of another EU Member State. For example, a registered branch of Rabobank for example, attached to the Dutch collective guarantee.

Which funds are protected?

The Protection Fund provides protection for individuals:
  • All types of accounts such as deposits, savings accounts and certificates of deposit that are provided by the issuer in custody, and
  • Financial instruments, including equity, bonds, mutual funds, or securities accounts.

Not everyone is eligible for this protection. Hereby excluded the government cum annexis, financial institutions, institutional investors and large corporations.

What is the guarantee of the bank

The financial contribution to Belgium since the end of 2008 equals ?? 100,000 for the money that has listed a client account and another ?? 20.000 for securities given by the depository institution. Ie a lower fee than at a Dutch bank. This fee applies per account and is also applicable to minors. Do you have any joint savings account, then both of them for twice ?? 100,000 are eligible. This of course excluding a possible compensation for your securities.

Calculation example payout Protection Fund

What does the warranty of the Protection Fund for you now if a bank gets into trouble? A single sample calculation on that provides greater clarity:
Suppose you have a savings bank ?? 150 000 in a savings account and are single account holder. If the bank goes bankrupt you get ?? 100 000 back through the Protection Fund and keep a demand to the curator of ?? 50,000. It goes without saying that if there are two joint account holders are rising to a maximum of the allowance ?? 200,000.

Conclusion Deposit Guarantee through the Protection Fund

All this once again shows that you would be well advised to spread your savings over several banks and that opening and-or an account in both names, you better protection than does a single account.