Banks What happens to the current account in the event of bankruptcy? How to protect savings – Corriere.it

Bank failure is rare, but not impossible. This was demonstrated by the events that in recent weeks affected for the first time the US Silicon Valley Bank, and later the Swiss Credit Suisse Bank. How can customers protect their savings? Italian law states that case is followed A bankruptcy trustee, a figure whose job it is to provide asset management It performs all bankruptcy procedures under the supervision of the bankruptcy judge and the creditors committee. Thus, its task is to sell the bank’s assets and make payments to credit holders in accordance with a priority order established by law. To do this, there is also the possibility of withdrawing from customers’ checking accounts.

Interbank Deposit Guarantee Fund

The first instrument available is the FITD: it covers in our country free or restricted savings deposits (deposit accounts), certificates of deposit and bank transfers up to a maximum of €100,000 per saver and €200,000 in the case of joint accounts. The principal amount is paid within 7 working days From the date of entry into force of the bank’s compulsory liquidation order. However, it is important to emphasize two aspects: given the priority of the bank’s debt repayment obligation, it is possible for customers to suffer a loss or have to wait longer than expected due to unavailability of funds; Moreover, it is clear that the current accounts most at risk are those over 100 thousand euros, since they do not have a guaranteed coverage for excess funds (which, therefore, are recommended to be transferred to another institution in order not to lose them entirely).

the exception

Fitd covers savings for small businesses and individuals (not in foreign currency). This does not include large corporations, institutional investors, or deposits from non-bank financial institutions. Some are planned Exclusions that allow protection to be extended beyond €100,000. For example, the guarantee on high temporary balances, which takes into account the entire amount up to 9 months: if the customer receives a transfer of a larger amount for the sale of his house, even if the bank fails in those days, the account holder loses that money.

Distribution of savings and investment in government bonds

Another way to protect one’s savings or at least to reduce the risk of bank failure is to diversify investments, in order to avoid concentrating them all in one credit institution. To choose the person to entrust the money to, it is necessary to assess your financial stability and, after that, to keep the balance of all your accounts under control and to stay up to date on the applicable regulations. Finally, there are some tools that theInvest money that minimizes your exposure to losses or the failure of banks, for example government securities, stocks or bonds, but also safe-haven assets (that is, those assets that the saver believes can preserve real wealth over time, and in periods of inflation, to maintain the real value of the things purchased) are examples On it real estate, works of art and diamonds.