SBS raised the Deposit Insurance Fund: why is its update important?

The Superintendence of Banking, Insurance and AFPs (SBS) recently raised the maximum coverage of the Deposit Insurance Fund (FSD) to S/ 116,284, this amount will apply for the March-May quarter of this year.

It is worth emphasizing that the FSD rose by S/ 647 compared to the previous quarter, when it stood at S/ 115,637.

The professor and finance expert at Pacífico Business School, Jorge Carrillo, points out that the savings accounts, term deposits and CTS accounts that people have in banks, finance companies, municipal savings and credit banks and rural savings and credit – does not apply to savings and credit cooperatives -, they continue to be protected above S/100,000 for three years (June 2019, to be specific).

Because it is important?

Carrillo points out that this support allows savers to recover their money – including interest earned – up to the maximum amount indicated, in the event of bankruptcy of any of the insured financial entities.

Furthermore, it emphasizes that this “insurance” is free for depositors, it is automatic because it does not require prior registration and applies to each entity independently.

“That is, a person could have S/100,000 in a bank and S/100,000 in a box, and would be covered by the FSD in both institutions,” he points out.

What entities does the FSD cover?

• 15 banks: BCP, BBVA, Scotibank, Interbank, Falabella, Ripley, Mibanco, BanBif, Pichincha, GNB, Comercio, Alfin, Citibank, Santander and ICBC.

• 8 finance companies: Crediscotia, Compartamos, Confianza, Oh!, Effective, Credinka, Proempresa and Qapaq

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

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

If a new financial institution enters the Peruvian market, it will not have coverage until it completes 24 months of contribution, as is currently the case with the Bank of China, which entered in mid-2020.

Insurance for COOPACs

Finally, Carrillo emphasizes that the savings and credit cooperatives (COOPAC) are not covered by the FSD, although they have created their insurance called Cooperative Deposit Insurance Fund (FSDC)whose maximum amount of coverage will be S / 10,000, but which will only come into effect, possibly, in mid-2024.

That is why savers from entities such as AELUCOOP or CREDICOOP Arequipa, which were recently intervened by the SBS, did not have such coverage.