Deposit Guarantee Fund

What is the Deposit Guarantee Fund?

The Deposit Guarantee Fund (DGF) is a public legal entity with administrative and financial autonomy and its own assets. It was established under the Legal Framework of Credit Institutions and Financial Companies, approved by Decree-Law no. 298/92 of 31 December.

Its mission is to guarantee the repayment of deposits held with participating credit institutions, contributing to trust and stability in the banking system, particularly as a mechanism to protect small depositors.

What does the Deposit Guarantee Fund cover?

The DGF guarantees the repayment of the total amount of cash credit balances held by each depositor with the relevant credit institution, provided certain conditions are met.

In particular, the guarantee applies when:

• The total amount of deposits does not exceed €100,000;
• Deposits with the credit institution are unavailable.

The DGF operates in coordination with the supervisory authority.

Who participates in the Deposit Guarantee Fund?

Participation in the DGF is mandatory for credit institutions headquartered in Portugal that are authorised to accept deposits. These institutions make periodic contributions to ensure the financial resources necessary for the operation of the Fund.

Deposits at Banco Finantia

All deposits held with Banco Finantia that do not fall within the exceptions set out in Article 165(1) of the Legal Framework of Credit Institutions and Financial Companies benefit from the repayment guarantee provided by the DGF whenever deposits become unavailable due to reasons related to the institution’s financial situation.

Repayment limit and timeframe

The DGF guarantees repayment of the full amount of each depositor’s cash balances, up to a maximum of €100,000.

Deposits are considered unavailable when:

• The deposit-taking institution, for reasons directly related to its financial situation, fails to repay deposits in accordance with the applicable legal and contractual conditions; or
• Banco de Portugal makes public a decision to revoke the authorisation of the deposit-taking institution.

Repayment is made within a maximum period of seven (7) business days, applicable since January 2024.

If repayment has not been made within this period, depositors should contact the Deposit Guarantee Scheme directly, as the time limit to claim repayment may be restricted. Further information is available at www.fgd.pt.

Deposits excluded from the guarantee

The following deposits are excluded from the repayment guarantee:

a) Deposits made in the name and on behalf of:

• • Credit institutions;
  • Investment firms;
  • Financial institutions;
  • Insurance and reinsurance companies;
  • Collective investment undertakings;
  • Pension funds;
  • Entities of the national or foreign public administrative sector;
  • Supranational or international organisations.

Except for:

• • Deposits of pension funds whose members are small or medium-sized enterprises;
  • Deposits of local authorities with an annual budget equal to or below €500,000.

b) Deposits arising from transactions in respect of which a final criminal conviction has been issued for money laundering offences;

c) Deposits whose holder has not been duly identified, in accordance with Article 26 of Law no. 83/2017 of 18 August, through submission of the information required under Article 23 of that law, at the date on which deposits become unavailable;

d) Deposits held by persons or entities who, in the two years prior to the unavailability of deposits or the adoption of a resolution measure, have:

• • Held a direct or indirect holding equal to or greater than 2% of the share capital of the credit institution; or
  • Been members of its management bodies,

unless it is demonstrated that they were not, by act or omission, at the origin of the institution’s financial difficulties nor contributed, by act or omission, to their aggravation.

For further information, please consult the Depositor Information Form.