The Belgian banking and financial sector follows a ‘twin peaks’ approach to supervision. Licensed deposit taking credit institutions are supervised by the National Bank of Belgium (NBB) while the financial markets are monitored by the Financial Services and Markets Authority (FSMA). Both credit institutions and investment firms belong to the Guarantee Fund to protect bank deposits and investments from institutional failure.
Deposit Guarantee Scheme (Belgium): The Belgian Guarantee and Protection Fund comprises a guarantee fund for financial products and a national resolution fund. The resolution fund aims to prevent the insolvency of a financial institution while the guarantee fund protects depositors, savers and investors in case of the failure of their affiliated financial institution.
Secured Deposit Limit: The Guarantee Fund reimburses bank deposits up to 100.000 euro per establishment. Some deposits however benefit from a temporarily high protection.
Temporarily High Balances: By Royal Decree [C-2016/03484] social purposes that are directly related to the personal financial situation of the creditor may achieve additional protection maximized at 500.000 euro.
Eligibility of Deposits: Deposits held at current, savings and term accounts, cash certificates, and bonds or bank securities issued before July 2014, are covered unless these belong to certain creditors. Excluded from coverage are inactive deposits for a period of 24 months as well as the assets of companies in the financial sector, or state and public authorities. Also ineligible are assets involved in terrorism and money laundering, bonds and securities issued after the 2nd of July 2014, and electronic money.
Claim Filing Procedure: Upon the failure of a financial institution, the Guarantee Fund informs the public about the closure of the bank and that a payout event occurs. National creditors login to Myminfin to verify their identity and submit a local bank account number in their name for repayment of their insured balance. International creditors have no access to the Myminfin portal and must contact the ‘Federale Overheidsdienst Financien’.
Claim Submission Timeframe: It is expected that the appropriate information is uploaded to the Myminfin portal within a 2 month period after the payout event is announced by the Guarantee Fund. However, claims do not expire when submitted after this deadline for righteous reasons.
Repayment Timeframe: Within 15 days after the repayment instruction is uploaded to Myminfin reimbursement is made. Efforts to expedite the processes to 7 days are made and become effective in 2024 the latest.
DGS Claim Rejections: Claims must be verified and approved before reimbursement is made. Without the appropriate information the Guarantee Fund cannot pay out. Ineligible deposits are rejected but can be reinspected by submission of supporting claim evidence.
Financial Architecture: The current reserves of the Guarantee Fund exceed 3 Billion euro. Member institutions make annual and extraordinary contributions for replenishment where needed.
Legal Proceedings: The commercial court is responsible for the institutional winding up. Claims that exceed the insured limits are part of civil action and insolvency procedures.
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