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.
All branches of EU-banks operating in Luxembourg participate in deposit guarantee schemes of their home countries. This means that RCB BANK LTD, Luxembourg branch participates in the deposit guarantee scheme of Cyprus.
RCB BANK LTD, Luxembourg branch is a member of Deposit Guarantee Fund for Banks and makes its contributions into it. In the case of RCB BANK LTD, Luxembourg branch failure, eligible depositors having covered accounts in this bank will be paid out the following compensation: