The Greek Depositor Compensation Scheme is managed by the Hellenic Deposit and Investment Guarantee Fund (TEKE), a legal entity responsible for protecting account holders in case of bank failures. The deposit guarantee scheme ensures the stability and confidence of the banking system by safeguarding depositors’ funds up to a predefined limit. In Greece, the deposit insurance covers up to €100,000 per depositor per institution, providing a safety net in the event of a bank’s insolvency or liquidation.
The need for deposit insurance arises from the potential risk of bank failures, which could cause significant losses for account holders and destabilize the financial system. By providing a level of protection for depositors, deposit guarantee schemes such as TEKE play a crucial role in maintaining trust in the banking sector and promoting economic stability. Additionally, they mitigate the risk of bank runs, where mass withdrawals can lead to further financial turmoil and contagion in the economy.
The organizational structure of TEKE consists of a Management Committee and a Supervisory Board. The Management Committee is responsible for the day-to-day operations of the fund, while the Supervisory Board ensures that TEKE operates in compliance with its legal mandate and monitors its activities.