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 Council adopted the dispatch in June 2020. Parliament is expected to address the bill for the first time in the second half of 2020. It is not expected to come into force until the start of 2022 at the earliest.


Further information

Last modification 15.10.2020


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