The Romanian Bank Deposit Guarantee Fund (FGDB) is the legal authority responsible for administering the domestic bank deposit guarantee scheme that safeguards account holders in the event of a bank failure. As a crucial component of the country’s financial safety net, the FGDB works to ensure depositors’ funds are protected up to a specified limit, maintaining confidence in the banking system and mitigating the risk of bank runs. The FGDB compensates eligible deposits in cases of bank insolvency or inability to return the funds.

Deposit insurance is vital for preserving stability in the financial sector, as it prevents panic withdrawals during times of economic uncertainty. By guaranteeing a certain amount of depositors’ funds, the deposit guarantee scheme reduces the likelihood of bank runs, which can lead to systemic crises. Furthermore, deposit insurance promotes prudent behavior among banks by subjecting them to strict regulatory oversight and requiring them to contribute to the FGDB through regular premiums.

The FGDB operates under the supervision of the National Bank of Romania (NBR) and follows an organizational structure that comprises the Board of Directors, responsible for strategic decision-making, and the executive management, which oversees the implementation of the Fund’s objectives. The contact information for the Romanian DGS administration is as follows: Bank Deposit Guarantee Fund, Bdul. Regina Elisabeta, nr. 15, sector 3, București, Romania, 030016; telephone: +40 21 326 6026.