International cooperation

The Guarantee System is a member of two international organizations.

The first one is the European Forum of Deposit Insurers (EFDI). It was established in 2002 in Vienna, its main objective is to contribute to the stability of financial systems by supporting European and international cooperation in the fields of deposit insurance, crisis management and investor compensation schemes. EFDI has 71 full and 15 associated members from 50 European countries. Among others, it serves as a platform for discussions about implementation of European legislation and closely cooperates with bodies of the European Union.

The Guarantee System is alo a member of the International Association of Deposit Insurers (IADI).

The IADI is a non-profit organization founded in May 2002 under Swiss Law. Its registered office is at the Bank for International Settlements in Basel, Switzerland. The genesis of the IADI was the Working Group on Deposit Insurance established by the Financial Stability Forum (FSF) in cooperation with World Bank (1999 – 2001). Currently, the IADI has 107 Members, 9 Associates, and 17 Partners, such as the World Bank and the International Monetary Fund. The former Deposit Insurance Fund was one of the 25 founding members. The IADI is governed by a 25-member Executive Council, headed by a president.

The main objectives of the IADI are to contribute to the stability of financial markets by promoting international cooperation in the field of deposit insurance (including the mutual exchange of experience) and by providing guidance for establishing new, and enhancing existing, deposit insurance systems in order to ensure their effective operation.

In 2025, IADI published Revised Core Principles for Effective Deposit Insurance Systems, setting important standards for deposit insurers including i.e. deadlines for reimbursement, coverage, funding and governance, etc. Revised principles also incorporate key developments in the evolving financial landscape, including the impact of digital innovation, the increasing integration of deposit insurers in resolution processes, and challenges arising from the 2023 banking turmoil. IADI Core Principles are included into the FSB’s Key Standards for Sound Financial Systems.

Cooperation on cross-border payouts

The European legislation (namely Directive 2014/49/EU) determines procedures for cross-border payouts of deposit compensation. In the event of insolvency of a foreign bank based in an EU Member State and operating in the Czech Republic through a branch, the compensation payout to the entitled persons will be made by the Guarantee System in the Czech Republic. The payout will be made in the name, at the expense and in accordance with the instructions of the relevant foreign deposit insurance scheme where the institution in question was insured. The procedure will be the same in the event of the bankruptcy of a Czech bank operating in another European Union Member State through a branch. In such a case the domestic deposit insurance scheme will make the payment of the deposit compensation to entitled persons in the territory of the other state, in the name, at the expense and in accordance with the instructions of the Guarantee System.

Related to the new requirements for cooperation of EU deposit insurance systems, the Financial Market Guarantee System (same as many other EU deposit insurance systems) signed in 2025 the Revised Multilateral Cooperation Agreement drafted by European Forum of Deposit Insurers. This Agreement introduces basic rules of cooperation and will be followed by more detailed „bilateral specifications“ signed between the Financial Market Guarantee System and related deposit insurance systems. The text of the Agreement is available in Documents.