SBS: Which banks and savings banks are covered by the Deposit Insurance Fund for up to S/125,714?

The Superintendency of Banking, Insurance and AFP (SBS) updated to S/125,714 the maximum amount of coverage of the Deposit Insurance Fund (FSD), which governs the financial system, corresponding to the quarter from March to May 2023. It should be noted that the balance for the previous quarter was S/ 125,603 (between December 2022 and February 2023).

In this way, savings accounts, term deposits and CTS accounts that people have in banks, finance companies, municipal savings and credit banks and rural savings and credit banks (does not apply to savings and credit cooperatives), they continue to be protected above S/100,000 since June 2019.

What entities are covered by the Deposit Insurance Fund (FSD)?

In total there are 42 institutions (16 banks, 12 municipal savings banks, 6 rural savings banks and 8 finance companies) that have an active Deposit Insurance Fund. They are the following:

• Banks: BCP, BBVA, Scotiabank, Interbank, Falabella, Ripley, Mibanco, BanBif, Pichincha, GNB, Comercio, Alfin, Citibank, Santander, ICBC and Bank of China.

• Financial: Crediscotia, Compartamos, Confianza, Oh!, Efectiva, Credinka, Proempresa and Qapaq

• Municipal savings banks: Arequipa, Piura, Huancayo, Cusco, Sullana, Trujillo, Ica, Tacna, Maynas, Lima, Del Santa and Paita.

• Rural banks: Cencosud Scotia, Raiz, Los Andes, Prymera, Del Centro and Incasur

It is important to mention that, according to Jorge Carrillo Acosta, professor and finance expert at Pacífico Business School, if a new financial entity enters Peru, it will not have this coverage until it has completed 24 months of contribution. This is the current case of the BCI, which began to operate in the country only in mid-2022.

Are cooperatives covered by the FSD?

The savings and credit cooperatives (COOPAC) are not covered by the Deposit Insurance Fund the specialist reiterated.

However, these entities have their own “insurance”, called the Cooperative Deposit Insurance Fund (FSDC), whose maximum amount of coverage will be S/10,000, but which will only come into force in mid-2024.

That is why the savers of many cooperatives that were intervened by the SBS in recent months (such as AELUCOOP or CREDICOOP AREQUIPA), did not have such coverage.

Importance of the Deposit Insurance Fund

Given the possibility of bankruptcy of one of the insured financial entities, the FSD allows savers to recover their money (including interest earned) up to the maximum amount indicated.

In addition, it is a free, automatic insurance (no prior registration is required) and it applies to each entity independently. “A person could have S/125,000 in a bank and S/125,000 in a box, and would be covered by the FSD in both institutions,” said Carrillo Acosta.