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 Novo Banco S.A., Succursale de Luxembourg participates in the deposit guarantee scheme of Portugal.
Novo Banco S.A., Succursale de Luxembourg is a member of Fundo de Garantia de Depósitos (FGD) and makes its contributions into it. In the case of Novo Banco S.A., Succursale de Luxembourg failure, eligible depositors having covered accounts in this bank will be paid out the following compensation: