The Bank Guarantee Fund (BFG) guarantee scheme covers deposits held at all domestic banks, i.e. those with their registered head offices located within the territory of the Republic of Poland, irrespective of the form of their operations (joint stock company, co-operative bank), with the exception of Bank Gospodarstwa Krajowego (state-run bank) and mortgage banks (which, as a rule, do not carry out deposit activities), all cooperative savings and credit unions. branches of foreign banks (i.e. bank branches established in the territory of a non-EU State) to the extent that the deposit guarantee system in the country does not guarantee the payment of funds at least to the extent and in the amount specified in the Act on the Bank Guarantee Fund, Deposit Guarantee Scheme and Resolution.

Under EU law (DGSD), branches of credit institutions from other EU Member States operating in Poland are covered by the deposit guarantee scheme of their home Member State. Since 31 December 2010, all EU Member States provide coverage of €100,000 per depositor, per credit institution (or the equivalent in national currency).

Funds deposited at the entities indicated by the Polish Financial Supervision Authority as the ones that hold no authorisation to perform banking transactions are not covered by the guarantee system. A list of such entities is posted on the website of the Polish Financial Supervision Authority in the section: Public warnings of the Polish Financial Supervision Authority.

A person or entity entitled to guaranteed funds is a depositor. In the event of a bank or a branch of a foreign bank the following are depositors:

• natural persons,
• legal persons,
• organisational units without legal personality but possessing legal capacity,
• school savings associations,
• employee assistance-and-loan associations,
• parent’s councils.

In the event of a cooperative savings and credit union, the following are depositors:

• natural persons,
• NGOs within the meaning of the Act on Public Service Activity and Volunteering,
• organisational units of a church or religious organisation which are legal persons,
• cooperatives,
• trade unions,
• tenants’ communities,

The Act on the Bank Guarantee Fund, Deposit Guarantee Scheme and Resolution (Article 22 paragraph 1) also stipulates that not all credit union account holders at banks and credit unions are entitled to depositor status (see: Question 5).

In the event of banks and cooperative savings and credit unions, the BFG guarantee does not cover funds deposited by:

• the State Treasury,
• Narodowy Bank Polski (National Bank of Poland),
• banks, foreign banks and credit institutions within the meaning of the Act – Banking Law
• cooperative savings and credit unions and the National Association of Cooperative Savings and Credit Unions,
• the Bank Guarantee Fund,
• financial institutions within the meaning of Regulation 575/2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012,
• investment firms within the meaning of Regulation 575/2013 and ‧recognised third-country investment firms referred to in Article 4 paragraph 1 point 25 of the said Regulation,
• persons and bodies unidentified by a bank or a cooperative savings and credit union, as the case may be,
• domestic and foreign insurance undertakings, as well as domestic and foreign insurance and reinsurance undertakings referred to in the Act on the Business of Insurance and Reinsurance,
• investment funds, investment fund companies, foreign funds, managing companies and branches of investment companies referred to in the Act on Investment Funds and Management of Alternative Investment Funds,
• open pension funds, employee pension funds, general pension societies and employee pension societies referred to in the Act on the Organisation and Operation of Pension Funds
• local government units,
• public authorities of any other Member State or of a third country, in particular, central governments, regional and local government units of these countries.

In the event of the bank, the deposit guarantee scheme protects deposits held by the depositor in all types of registered bank accounts that it maintains, whether denominated in PLN or in foreign currencies. The guarantee scheme also covers:

• other depositor claims arising under the bank account agreements;
• depositor claims arising under the bank financial settlements pursued by the bank;
• depositor claims arising under bank of bank securities issued prior to 2 July 2014.

The deposit guarantee scheme also covers claims against the bank in respect of a record in the contemplation of demise and funeral costs provisions in respect of a bank account holder, provided that such claims come due prior to the date on which the operations of the bank are suspended.

In the event of the credit union, the deposit guarantee scheme covers deposits held by the depositor at the credit union in all types of registered bank accounts that it maintains, whether denominated in PLN or in foreign currencies. The guarantee scheme also covers:

• other depositor claims arising under the account agreements;
• depositor claims arising under the bank financial settlements pursued by the credit union.

The deposit guarantee scheme also covers claims against the credit union in respect of a record in the contemplation of demise and funeral costs provisions in respect of a credit union member, provided that such claims come due prior to the date on which the operations of the credit union are suspended.

Important: Investment products (such as mutual fund units, securities, or insurance products) are excluded from deposit guarantee coverage under DGSD Art. 5(2). Even if purchased through your bank, these are not covered deposits. Both the banks and credit union also offer hybrid products, e.g. a term deposit combined with investment fund units – and in such cases only the deposit component of the product is covered by the guarantee.

No, the funds paid to the cooperative bank or the cooperative savings and credit union by way of shares, the entry fee or membership contributions are not covered by the guarantees.