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Deposit Insurance > Protection for Savers > What Deposits does IPAB cover?
What deposits does IPAB cover?

One of IPAB’s primary functions is to protect savers’ deposits in full service banks.

When a bank enters a state of liquidation or bankruptcy, IPAB proceeds to pay the liquid and demandable guaranteed obligations assumed by the bank in question, subject to the limits and conditions established in the Law of Banking Savings Protection (Spanish acronym LPAB) and the Law of Credit Institutions (Spanish acronym LIC), except those that have been the object of transfers of assets and liabilities.

Guaranteed obligations are understood to include the deposits, loans, and credit mentioned in Article 46, Items I and II, of the Law of Credit Institutions (Spanish acronym LIC). For example:

Sight deposits, such as checking accounts
Savings accounts.
Term deposits or deposits withdrawable on prior notice, such as deposit certificates.
Deposits withdrawable on predefined days.
Current account deposits associated with debit cards.
 

Under the LPAB, bank obligations payable to the following persons are excluded from the coverage regime:

Corporations that form part of the same financial group as the bank.
Financial entities.
Shareholders, board members, and officers at the two highest levels in the bank’s organization and attorneys-in-fact.

Also, IPAB does not guarantee the following operations:

Operations that have not observed the applicable legal, regulatory, and administrative provisions.

Bank obligations that deviate from sound banking practices and methods.
Liabilities documented in negotiable instruments, as well as bearer instruments.

IPAB does not protect investments in investment firms, insurers, savings funds, savings and loan companies, brokerage firms, or development banks, even if such investments are offered or promoted in bank branch offices.
 
   

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Instituto para la Protección al Ahorro Bancario
Varsovia 19, Col. Juárez, Delegación Cuauhtémoc, C.P. 06600, Tel. 5209 - 5500, Derechos Reservados IPAB 2007