Due to the jump in inflation, the Central Bank has decided to raise the guarantee ceiling for bank deposits. From January 1 next year, deposits of 6 million pesos will be insured. The monetary authority updated this amount after almost three years: the last time it updated this amount was in May 2020 when it brought it to $1.5 million.
Regard insurance that applies per depositor and per entity. Central says this update is a good way to stimulate bank placements. According to data from the same body, in November sight deposits decreased by more than 16% in real terms, ie if we discount the advance of inflation, compared to what they had recorded in November last year.
“The board of directors of the Central Bank of the Argentine Republic has determined that starting from January 1, 2023, the coverage of the Deposit Guarantee Insurance System will be up to 6,000,000 pesos per depositor in each financial institution,” announced the body chaired by Miguel Pesce in a brief statement.
“This update is made taking into account the evolution observed both in deposits and in the guarantee fund managed by Seguro de Depósitos SA (SEDESA)”
By this way, If a bank closes its doors or changes ownership, the deposits of savers, savings banks and current accounts are guaranteed by Seguros de Depósitos SA (SEDESA) for up to $6 million from next year.
The organization and functioning of the bank deposit guarantee insurance scheme was established by Law 24.485 and was regulated in April 1995, by Decree 540. For this purpose, Seguro de Depósitos SA (Sedesa) was created, a company i whose shareholders are the Central Bank and financial entities, represented by Caja de Valores.
Financial institutions contribute to the Deposit Guarantee Fund to the extent they receive capital. Therefore, when the stock of deposits grows, so does the patrimony that Sedesa has to answer for. The balance of the Fund as of November 31 exceeded $664,000 million.
Institutions are required to participate in advance: they pay a monthly contribution based on the daily average of deposits, both in pesos and in dollars, to have something to respond to in any situation of risk for depositors.
Source: Clarin
