Deposit guarantee facilities

CRR-credit institutes as defined in Article 7 para. 1 no. 9 ESAEG that are domiciled in Austria, must belong to a protection scheme (the uniform protection scheme or an Institutional Protection Scheme that is recognised as a deposit guarantee scheme). Each of the five separate trade associations currently still has its own separate protection scheme (on a transitional basis). From 1.1.2019 a single fund will be established at the Wirtschaftskammer Österreich (Austrian Economic Chambers) for deposit protection purposes. This fund will be paid into in advance, rather than retrospectively as was previously the case. This should guarantee the fund’s ability to pay out in the event that a pay-out event occurs. Instead of having five protection schemes, one each for the individual trade associations, from this point onwards there will be a single protection scheme with a single fund. Up until this point, CRR-credit institutions are still required to belong to a deposit guarantee facility within their trade association, with the consequence that five protection schemes will continue to exist until then. If a credit institution does not belong to the protection scheme, then its licence to accept eligible deposits or to conduct investment services subject to guarantee obligations lapses. The protection schemes shall ensure in principle that in the event of the insolvency of a member institution that the deposits up to a maximum of EUR 100 000 or the equivalent in a foreign currency per depositor can be paid out upon the depositor’s request following identity verification within seven working days (albeit with transitional periods until 01.01.2024). An overview of the existing deposit guarantee facilities can be found here.