Banco de Portugal proposed increasing mandatory contributions paid by commercial lenders to the Deposit Guarantee Fund (Fundo de Garantia de Depósitos or FGD) for 2027. The draft instruction would raise the contributory rate from 0.0009% to 0.0011%, marking the first rate hike since 2024. The proposal is currently under review by the fund's management committee and the Portuguese Banking Association (Associação Portuguesa de Bancos).
Banco de Portugal Proposes Higher Bank Guarantee Contributions
Wednesday, 11 November 2026AI summary
Context & Explainers
The Deposit Guarantee Fund (Fundo de Garantia de Depósitos or FGD) protects bank deposits in Portugal up to €100,000 per depositor per financial institution if a bank fails. Supervised by the Bank of Portugal (Banco de Portugal), it is funded entirely by contributions from participating credit institutions rather than taxpayer money. This aligns with EU banking rules that ensure retail savers across member states have standard baseline protection.
