Confidence and stability
If people no longer have confidence in the security of their money in the bank, a bank run can occur. If large numbers of account holders try to withdraw their money, even a healthy bank can get into trouble. In operating the deposit guarantee, the government ensures that account holders’ money is always safe up to €100,000 per person. This can prevent a bank run. If a bank goes bankrupt, the deposit guarantee allows account holders to regain access to their money quickly. They do not need to wait for the bank to be wound up. This protection strengthens the stability of the economy and sustainable prosperity in the Netherlands.