Deposit guarantee scheme is a financial stability mechanism
implemented in many countries to protect bank depositors against the loss of their deposits
in the case when a bank is unable to meet its obligations to depositors
by compensating certain deposits held by depositors of the bank.
This compensation is paid out from the contributions which banks have made
into a deposit guarantee fund.
Deposit Guarantee in FCM Bank Ltd
All credit institutions operating in Malta, except for branches
of non-EEA banks, are obliged to participate in Maltese deposit guarantee scheme.
FCM Bank Ltd is a member of Depositor Compensation Scheme (DCS) and makes its contributions into it. In the case of FCM Bank Ltd failure, eligible depositors having covered accounts
in this bank will be paid out the following compensation:
Maximum Protected Amount
Temporary High Balance
residents of Malta
citizens of Malta
registered in Malta
banks financial institutions investment firms insurance undertakings collective investment undertakings pensions and retirement funds public authorities
most types of deposit are covered, including
time deposit accounts
any accounts which, at the time of the banks’ failure, may be in credit (such as credit card accounts and overdrafts)