The Irish Depositor Compensation Scheme (DCS) is a vital component of the financial safety net in Ireland, designed to protect account holders in the event of a bank failure. The scheme ensures that individual depositors are reimbursed up to a specific limit, currently set at €100,000 per person per institution. The purpose of deposit insurance is to maintain public confidence in the banking system and prevent bank runs, where large numbers of depositors withdraw their funds simultaneously due to fears of the bank’s insolvency. The DCS in Ireland is funded by contributions from banks and credit institutions, which are required to participate in the scheme by law.

The need for deposit insurance arises from the potential risk of bank failures and their consequences on depositors and the economy as a whole. When a bank fails, depositors may lose their savings, leading to a loss of confidence in the banking sector and the potential for widespread panic. By providing a guarantee on deposits up to a certain limit, the DCS helps to mitigate these risks and maintain stability in the financial system. Deposit insurance also serves to protect vulnerable depositors, such as individuals and small businesses, who may not have the resources or expertise to assess the financial health of a bank.

The Central Bank of Ireland is the supervisory authority responsible for the administration of the Irish DCS. It operates under the legal framework established by the European Union’s Deposit Guarantee Schemes Directive (DGSD). The Central Bank oversees the management, funding, and payouts of the scheme, and ensures compliance with all relevant regulations. It also works closely with other financial regulators, both domestically and internationally, to monitor the health of the banking sector and respond to emerging risks.

The Central Bank of Ireland can be contacted at its headquarters in Dublin, at the following address:

Central Bank of Ireland
New Wapping Street, North Wall Quay,
Dublin 1, D01 F7X3, Ireland.

Telephone: +353 1 224 6000