The same thing is the case here in the US. FDIC insures up to 250k. After that you are liable to lose it if the bank goes tits up. In this case, the bank went

The same thing is the case here in the US. FDIC insures up to 250k. After that you are liable to lose it if the bank goes tits up. In this case, the bank went tits up, he got his 100k EUR back from insurance. As for mortgages and loans, those aren't insured to the bank either (unless underwritten by the gov't ...), so if YOU go bankrupt the bank is out that money. In most cases you have some equity backing that loan so even if you go bankrupt some part of the money can be recovered by for example selling your house.