European Parliament approves new deposit protection directive DGSD2

The European Parliament approved on 26 March 2026 the Council’s first-reading position on the new Deposit Guarantee Schemes Directive (DGSD2), which widens the scope of bank deposit protection and strengthens cross-border cooperation across the Union. The legislative resolution was published in the C series of the Official Journal of the European Union on 2 September 2026 under reference C/2026/4037.

The vote closes the second reading of the ordinary legislative procedure on the reform of Directive 2014/49/EU, the framework that guarantees savers’ deposits when a credit institution fails. The text builds on the Commission proposal COM(2023)0228 and takes into account the opinion delivered by the European Central Bank on 5 July 2023.

A broader safety net for savers

The new directive extends the categories of deposits covered by guarantee schemes, giving more savers access to protection. It also clarifies the conditions under which deposit guarantee scheme funds may be used, including in cross-border situations. The reform addresses four main areas:

• the scope of deposit protection;
• the use of deposit guarantee scheme funds;
• cross-border cooperation;
• transparency towards depositors.

Stronger cross-border cooperation

The reform reinforces cooperation between national deposit guarantee schemes and resolution authorities, easing the handling of failures of banks operating in several member states. It also strengthens transparency requirements so that depositors are better informed about the coverage they enjoy and how to claim it.

Next steps

By approving the Council position, Parliament clears the way for the final adoption of the act. Its President and Secretary-General are instructed to sign the act and, in agreement with the Secretary-General of the Council, to arrange for its publication in the Official Journal of the European Union, in line with Article 297(1) of the Treaty on the Functioning of the European Union.

For savers and credit institutions across the EU, the directive means a more predictable and better-protected banking environment. By harmonising coverage and cooperation, DGSD2 reduces the risk of divergent outcomes when a bank fails, reinforcing confidence in the single market.

Source: Official Journal of the European Union, C series, 2 September 2026, p. 1 (official reference: C/2026/4037).