Deposit Guarantee in Portugal

In Portugal, the repayment of deposits is guaranteed by two Funds – the Mutual Agricultural Credit Guarantee Fund, established by Decree-Law No 182/87 of 21 April 1987, and the Deposit Guarantee Fund, established by Decree-Law No 298/92 of 31 December 1992.

The Mutual Agricultural Credit Guarantee Fund (FGCAM) and the Deposit Guarantee Fund (FGD) are public-law legal persons, with administrative and financial autonomy. Both funds have their head office on the premises of Banco de Portugal. These entities jointly contribute to the stability of the Portuguese financial system and are aimed at guaranteeing the repayment of deposits and promoting the solvency and liquidity of member institutions.

Within the limits laid down in Decree-Law No 345/98, as amended by Decree-Law No 211-A/2008 and Decree-Law No 162/2009, FGCAM guarantees the repayment of deposits with the Central Mutual Agricultural Credit Bank and with the agricultural banks belonging to SICAM.

Under the terms of the laws governing it, FGD guarantees the repayment of deposits with other credit institutions having their head office in Portugal authorised to take deposits (banks, savings banks and agricultural banks not belonging to SICAM). FGD’s guarantee scheme also covers deposits taken by branches of credit institutions having their head office in other EC Member States that voluntarily participate in the FGD and by branches in Portugal of credit institutions having their head office in non-EC Member States, unless these deposits are covered by a guarantee scheme in the home country under terms deemed equivalent by Banco de Portugal.

The limits of the guarantee and the deposits excluded from the guarantee are common to both Funds.