The Luxembourg Fonds de garantie des dépôts Luxembourg (FGDL) is the legal authority responsible for managing the domestic bank deposit guarantee scheme. This scheme is designed to protect account holders by providing a safety net in case a financial institution fails. Deposit insurance schemes, such as the one managed by the FGDL, are crucial for maintaining financial stability and public confidence in the banking system. They mitigate the risk of bank runs and facilitate the smooth functioning of the financial markets.

The deposit guarantee scheme in Luxembourg covers deposits of up to €100,000 per depositor and per bank. In case a bank fails, the FGDL is responsible for reimbursing eligible depositors within seven working days, ensuring that individuals and small businesses do not face financial hardship. This deposit insurance not only safeguards account holders, but also contributes to financial stability by reducing the likelihood of contagion effects from a single bank failure spreading to the broader financial system.

The FGDL operates under the supervision of the Commission de Surveillance du Secteur Financier (CSSF), Luxembourg’s financial regulator. The board of the FGDL consists of representatives from the Ministry of Finance, the CSSF, and professionals from the financial sector. The fund is financed by contributions from Luxembourg credit institutions, ensuring that it has sufficient resources to handle potential bank failures.

To get in touch with the FGDL, you can visit their website at or reach them by mail at Fonds de garantie des dépôts Luxembourg, L-2956 Luxembourg, or by phone at +352 26 25 1-1.