The European Banking Authority (EBA) recommends EU-wide deposit protection of client funds. Client funds that e-money institutions, payment institutions and investment firms deposit with credit institutions should be protected by a deposit guarantee scheme in all EU Member States. Currently, Member States interpret the Directive differently. While some Member States protect client funds as deposits, others do not.

The EBA Opinion sets out a total of five recommendations to the European Commission to change the respective Directive.

Our briefing provides an overview of the aspects most relevant for credit institutions and their clients and explores the impact and consequences on the overall deposit protection landscape including on the cross-border safeguarding of client funds, potential follow-up changes to the Payment Service Directive, E-Money Directive and MiFID, the impact on the operational complexity in reporting to the deposit guarantee schemes and the calculation of contributions as well as further knock-on effects for credit institutions.