Protection of Swiss bank deposits
esisuisse is a self-regulatory organisation for banks in Switzerland. esisuisse guarantees that it will cover protected deposits as part of the self-regulation of Swiss banks and securities firms. All banks with a branch in Switzerland must be members of esisuisse. esisuisse is a private association with its registered office and office in Basel.
Goals of the deposit insurance
Protect money against the risk of loss
It aims to protect the general public’s money against the risk of loss in the event of a bank’s bankruptcy.
Strengthen confidence in the financial system
It strengthens confidence in the financial system and thus prevents a bank run.
Protection of bank clients in Switzerland
If the Swiss Financial Market Supervisory Authority FINMA initiates bankruptcy proceedings against a bank, FINMA appoints a liquidator to liquidate the bank. The liquidator uses the proceeds from the sale of the bank’s assets to pay creditor claims, to the extent possible.
The bank’s liquidator appointed by FINMA uses the bank’s available liquidity to pay out the protected deposits. esisuisse funds the payment for the protected deposits if the bank has insufficient liquidity available. The banks make a maximum of CHF 7.9 billion available to esisuisse for this purpose.
This amount corresponds to the value specified in the law of 1.6% of all protected deposits in Switzerland.
The banks must provide esisuisse with collateral (securities or money) for half of these approximately CHF 7.9 billion by 01.12.2023 at the latest.
The deposit insurance scheme ensures disbursement at the start of the liquidation procedure. In this way, clients remain financially able to act even in the event that their bank becomes bankrupt.
What are deposits?
Deposits are client balances on accounts held at banks.
Who is classed as a client?
All clients (private and corporate) of banks are protected by deposit insurance scheme: Natural persons (adults, children) and legal entities.
Is my money that I hold at my bank protected?
Deposits at banks that operate a branch in Switzerland authorised by the Swiss Financial Market Supervisory Authority FINMA are covered by the deposit insurance scheme. This includes the cantonal banks and PostFinance. Only deposits at securities firms authorised by FINMA as «account-holding» are covered by the deposit insurance scheme.