Deposit Guarantee Schemes Directive (DGSD)

The Deposit Guarantee Schemes Directive (DGSD) is a European Union regulation designed to protect bank customers' savings. It ensures that if a bank fails, depositors are compensated up to a certain limit, currently set at €100,000 per person per bank. This scheme aims to boost public confidence in the banking system by guaranteeing that individuals will get their money back, thereby safeguarding savings and promoting financial stability across EU member states. Each country's deposit guarantee scheme is responsible for ensuring these protections are in place for its banks.