What are banks backed by?

Www.ipab.org.mx registration

The Deposit Guarantee Fund (FGD) is an entity that covers savings and guarantees the capital deposited up to 100,000 euros per client and bank. It protects the money invested in deposits and bank accounts in case the bank goes bankrupt.

The ideal when we are looking to contract a product such as a deposit or a savings account is that we look at whether that bank is part of the Deposit Guarantee Fund (FGD), which is the entity that will protect our money.  These are its key points:

If we have a bank account or deposit with two or more holders, as the FGD covers up to 100,000 euros per person, we would be guaranteed the first 200,000 euros in case of adding both protections.

However, it must be taken into account that the 100,000 guaranteed are per holder, so that it includes all the money that each person has distributed in products of the same entity, whether in savings accounts, current accounts or fixed-term deposits, etc.

The guaranteed products are current accounts, savings accounts or time deposits. We understand that those products that have the protection of the Deposit Guarantee Fund are the safest, since even if the entity were to go bankrupt, the investor could recover all his money (and also the agreed benefits). In this sense, they are protected:

What does the IPAB support?

The IPAB guarantees the payment of up to the equivalent in Mexican pesos of 400,000 investment units (UDI’s) per individual or legal entity, regardless of the number and type of obligations guaranteed in favor of the saver and payable by the same bank.

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How much money do banks insure?

The Spanish Deposit Guarantee Fund covers money deposited in Spanish banks up to a maximum amount of 100,000 euros per holder in each bank.

Who regulates banks?

The National Banking and Securities Commission (CNBV) authorizes and monitors banks, savings banks and cooperatives, among other institutions, to ensure that they make good use of people’s savings, and to monitor the way in which they grant loans.


It should be noted that if the user has more than one account or operation in the same bank, the balances of these are added together and the total amount is taken as the basis for determining the amount to be covered, which in all cases is limited to 400 thousand UDIS.

For example: if you have a promissory note with an amount of one million 250 thousand pesos and a Certificate of Deposit for 800 thousand pesos, but also a balance of 130 thousand pesos in a Checking Account, the amount that would not be covered by the Deposit Insurance is 125 thousand pesos, since it exceeds the approximate amount of 2 million 55 thousand pesos established by the IPAB.

How to know if a bank is protected by the IPAB?

On the IPAB’s website www.ipab.gob.mx, you can find a list of institutions that have products guaranteed by the institute itself.

What does the IPAB not protect?

The IPAB also does not protect investments in investment companies, insurance companies, savings banks, savings and loan companies, brokerage firms or development banks, even if they are offered at bank branches.

Which are the agencies under IPAB?

Within the entire network in charge of regulating, monitoring and sanctioning the financial system in Mexico – such as Condusef, the CNBV or the UIF – the Institute for the Protection of Bank Savings (IPAB) has a very particular mission: to protect savers.

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Ipab telephone

Central banks in developed countries have control and monopoly over the issuance of money (the predominant asset in all means of payment), which in turn allows them to impose the monetary policy they deem appropriate, setting the price (interest rate) of that money. What would happen if another asset starts to undercut (official) money as a means of payment? The ‘power’ of central banks could be threatened, while the financial system would face major changes and risks.

Although the ECB’s request is a few days old, central bankers’ speeches on the future of money have long mentioned stablecoins as one of the great threats to monetary policy. These digital currencies are characterized by being backed by hard currencies, such as the dollar in the case of the Diem. Their competition can pose a threat to the functioning of the financial system and monetary policy. What are stablecoins and why can they be a threat to monetary policy? David Tercero-Lucas explains in his paper that right now the EU regulatory framework summarizes means of payment into three main categories:

What is the purpose of the IPAB?

To guarantee bank deposits, mainly from small and medium-sized savers, and to resolve at the lowest possible cost banks with solvency problems, contributing to the stability of the banking system and safeguarding the national payment system.

What is the IPAB and what are its functions?

Institute for the Protection of Bank Savings (IPAB)

This is the Federal Government institution in charge of protecting the bank deposits of small and medium-sized savers, with automatic and free coverage of up to 400 thousand UDIs, which is equivalent to a little more than 2.5 million pesos.

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How does IPAB insurance work?

Bank Deposit Insurance is the guarantee granted by the IPAB to protect the money that individuals have in banks operating in Mexico by guaranteeing their savings for up to 400 thousand Investment Units (UDIS)* which, as of today, is equivalent to approximately two million 700 thousand pesos.

Investment funds are protected by the IPAB.

Among the transactions protected by the IPAB guarantee are, among others, the following: checking accounts, promissory notes with yields payable at maturity (as long as they are not issued to bearer and have not been negotiated), savings accounts, certificates of deposit, as well as the balances, if any, in favor of the bank’s customers derived from debit cards.

Yes, the IPAB guarantees the payment of both the principal and the accessories of those transactions considered as guaranteed obligations in terms of the Bank Savings Protection Law up to a limit of 400,000 UDIs.

– Shareholders, members of the board of directors and officers of the first two hierarchical levels of the institution, general attorneys-in-fact with administrative powers and general managers.