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 foreign banks operating in the Czech Republic participate in deposit guarantee schemes of their home countries. This means that Industrial and Commercial Bank of China Limited, Prague Branch, odštěpný závod participates in the deposit guarantee scheme of China.
In the case of Industrial and Commercial Bank of China Limited, Prague Branch, odštěpný závod failure its depositors will not be paid out any compensation.