What question did this study set out to answer?

To analyze the increase in deposit insurance limits in Spain and its impact on depositor confidence.

April 7, 2026Open Access

Spain: Deposit Guarantee Funds

Key Points

To analyze the increase in deposit insurance limits in Spain and its impact on depositor confidence.
Examined changes in deposit insurance limits by Spanish authorities.
Analyzed the compulsory membership for banks and savings institutions in deposit guarantee funds.
Reviewed the implementation of new deposit-insurance legislation in 2011.
The insured limit was raised from EUR 20,000 to EUR 100,000 to enhance depositor confidence.
Membership in the guarantee funds remained compulsory for Spanish banks and savings institutions.
Despite the banking crisis, the funds saw no claims until April 2010, indicating depositor trust.

Abstract

On October 10, 2008, Spanish authorities increased the amount insured under its three Fondos de Garantía de Depósitos (FGDs), Spain’s deposit-insurance schemes, from EUR 20,000 to EUR 100,000 (USD 27,200 to USD 136,000). By raising this limit, which was meant to be a permanent change to the banking system, Spanish authorities intended to bolster depositor confidence while exceeding a recent European Union (EU) recommendation to expand such coverage to at least EUR 50,000. Membership in one of the FGDs was compulsory for banks, cajas (savings banks), and cooperatives, each of which had a separate fund. These institutions paid a 0.2% premium on their insured funds, which included a variety of deposit accounts. Although the Spanish banking crisis intensified, the FGDs remained unused by the end of April 2010. In 2011, Spain adopted new deposit-insurance legislation, merging the three FGDs into a single fund.

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