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All banks (at least in Poland) are backed up by kind of guarantees fund, which allows to return some money to clients in case of bankruptcy. (WRONG INFO: It's 1
by krcz 14y ago
All banks (at least in Poland) are backed up by kind of guarantees fund, which allows to return some money to clients in case of bankruptcy. (WRONG INFO: It's 100% for amounts < 1000 EUR, 90% for amounts between 22'500 EUR and 0% (no guarantees) above that.) EDIT: actually it's 100% up to 100k EUR and 0% above.
But it's kind of risk you should be aware of when keeping money in bank. Simple taking money from accounts under risk of bankruptcy isn't.
- khuey 14y agoAnd what good did that 100% up to 100k EUR do people with bank accounts in Cyprus? That's the whole point. They broke the deposit guarantee. Now you really do have an unsecured bank debt.
- krcz 14y agoWhat do you mean? Won't things described here: http://www.centralbank.gov.cy/nqcontent.cfm?a_id=8158&lang=en http://www.centralbank.gov.cy/nqcontent.cfm?a_id=8158&la... work in case of bankruptcies of these two banks?
- khuey 14y agoBut the banks aren't going bankrupt. If you have 100k EUR in a bank account in Cyprus today, you're going to get 93.250k EUR on Tuesday. If instead the bank went bankrupt you'd have 100k EUR in your bank account on Tuesday too thanks to the deposit insurance. You'd be better off if the bank actually went bankrupt! The typical pro-bailout argument at this point is that if Cyprus lets the banks go bankrupt the deposit insurance scheme (in other words, the government) won't be able to make everyone whole. That argument is a tacit admission that bank accounts really are unsecured.
- kansface 14y agoNot really if you consider that no one can or would pay in the case of bankruptcy.