To prepare for the upcoming XXL weekend, the Central Bank’s board of directors held a meeting earlier than usual to update the guarantee limits for bank deposits. The new limits are as follows: deposits made in pesos are now covered up to $50 million, while deposits in foreign currency are covered up to US$100,000. This adjustment was made official in Communication A 7985 and is primarily a response to inflation.
The deposit guarantee insurance system provides protection for bank depositors by ensuring that their funds are safe and secure. This insurance is applied per depositor and per entity, covering savings accounts, checking accounts, and other types of bank accounts. The system was established under Law 24,485 and is regulated by decree 540. Sedesa, a company owned by the Central Bank and financial entities, provides this insurance.
Financial institutions contribute to the Deposit Guarantee Fund based on their capital receipts with the goal of having enough funds available to respond effectively to any risks that may arise for depositors. As of March 21st, the fund balance was $3,344,653,160,951. This insurance covers various types of bank accounts including current accounts, demand accounts, fixed term investments, salary accounts among others.
The deposit guarantee insurance system ensures that when deposits grow so does funding available to Sedesa which helps institutions respond effectively to any potential risks facing depositors. Banks must make monthly contributions based on their average daily deposits in both pesos and dollars as part of this preventative measure. In conclusion