Depositor protection and bank insolvency

In February 2017, the Federal Council decided to improve the depositor protection system. The time taken to pay out protected deposits in case of a bank becoming bankrupt should be reduced. Furthermore, the upper limit of the system is to be set at 1.6% of the total secured deposits. In addition, the financing of the deposit protection system is to be strengthened with the deposit of securities to the value of 50% of the banks' contribution obligations. 

For the corresponding amendment of the Banking Act, a consultation took place until the summer of 2019. The amendment also includes the insolvency provisions submitted to Parliament under the Financial Institutions Act and rejected to the Federal Council. It also contains a supplementary regulation on the segregation of securities.

The Federal Assembly passed the bill in the final votes on 17 December 2021. The amended Banking Act and its implementing provisions will enter into force at the beginning of 2023.


Further information

Last modification 09.12.2022


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