It aims to protect the general public’s money against the risk of loss in the event of a bank’s bankruptcy.
It strengthens confidence in the financial system and thus prevents a bank run.
If the Swiss Financial Market Supervisory Authority FINMA initiates bankruptcy proceedings against a bank, FINMA appoints a liquidator to liquidate the bank. The liquidator uses the proceeds from the sale of the bank’s assets to pay creditor claims, to the extent possible.
The bank’s liquidator appointed by FINMA uses the bank’s available liquidity to pay out the protected deposits. esisuisse funds the payment for the protected deposits if the bank has insufficient liquidity available. The banks make a maximum of CHF 8 billion available to esisuisse for this purpose.
This amount corresponds to the value specified in the law of 1.6% of all protected deposits in Switzerland.
The banks must provide esisuisse with collateral (securities or money) for half of these approximately CHF 8 billion by 01.12.2023 at the latest.
The deposit insurance scheme ensures disbursement at the start of the liquidation procedure. In this way, clients remain financially able to act even in the event that their bank becomes bankrupt.
Deposits are client balances on accounts held at banks.
All clients (private and corporate) of banks are protected by deposit insurance scheme: Natural persons (adults, children) and legal entities.
Deposits at banks that operate a branch in Switzerland authorised by the Swiss Financial Market Supervisory Authority FINMA are covered by the deposit insurance scheme. This includes the cantonal banks and PostFinance. Only deposits at securities firms authorised by FINMA as «account-holding» are covered by the deposit insurance scheme.