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 credit institutions operating in Croatia are obliged to participate in Croatian deposit guarantee scheme.
BKS Bank AG, Glavna podružnica Hrvatska is a member of State Agency for Deposit Insurance and Bank Resolution and makes its contributions into it. In the case of BKS Bank AG, Glavna podružnica Hrvatska failure, eligible depositors having covered accounts in this bank will be paid out the following compensation: