In preparation for the upcoming XXL weekend, the board of directors of the Central Bank held an early meeting and made a significant adjustment to the guarantee limits for bank deposits. Deposits made in pesos are now covered up to $50 million, while deposits in foreign currency are covered up to US$100,000. This change was primarily a response to inflation and represents a 733% increase from the previous insured amount.
The deposit guarantee insurance system is designed to protect depositors in case a bank closes or changes ownership. This insurance is applied per depositor and per entity and covers bank deposits, savings accounts, and checking accounts. The system was established by Law 24,485 and regulated in April 1995 by decree 540. Sedesa, a company owned by the Central Bank and financial entities, provides this insurance.
Financial institutions contribute to the Deposit Guarantee Fund based on their capital they receive, with the goal of having enough funds to respond to any risks for depositors. As of March 21, the fund balance was $3,344,653,160,951. This insurance covers deposits in current accounts, demand accounts, savings accounts, fixed terms, salary accounts, and term investments.
The system ensures that when the stock of deposits grows, the funding available to Sedesa also increases. Banks are required to make monthly contributions to the fund based on their average daily deposits in both pesos and dollars. This preventative measure allows institutions to respond effectively to any potential risks for depositors.
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