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 non-EU banks operating in Luxembourg participate in the deposit guarantee scheme of Luxembourg.
The Royal Bank of Scotland International Limited, Luxembourg Branch is a member of Fonds de garantie des dépôts Luxembourg (FGDL) and makes its contributions into it. In the case of The Royal Bank of Scotland International Limited, Luxembourg Branch failure, eligible depositors having covered accounts in this bank will be paid out the following compensation: