John Cassar WhiteJohn Cassar White

Bank of Valletta chairman John Cassar White has warned that the Depositor Compensation Scheme has not yet built up sufficient reserves to cover claims, adding that ad hoc measures would be needed.

The Depositor Compensation Scheme is a rescue fund for depositors of failed banks that are licensed by the Malta Financial Services Authority, and is based on an EU Directive. It is capped at €100,000 per depositor.

The Maltese fund had reserves of nearly €100 million at the end of 2012, which were accumulated from an initial contribution made by banks licensed with the MFSA, topped up by supplementary and special contributions. The amount paid by each bank is proportionately based on its eligible deposits.

Full story in the Times of Malta Business and timesofmalta.com premium at http://www.timesofmalta.com/articles/view/20131107/business-news/BOV-chairman-warns-on-depositor-scheme.493682#.UntzohAixOQ

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