Europe's Bank Guarantees

European finance ministers moved to reassure banking customers by agreeing to raise the threshold for bank-deposit guarantees to 50,000 euros ($67,930), from the current level of 20,000 euros, Reuters reported. The move comes after some countries promised unlimited protection for savings, for fear of bank runs.>Poll: Should Countries Guarantee Deposits?>More Europe News

Ireland was the first government to act, sparking the current flurry of activity. On Sept. 30, the government promised depositors that the liabilities of six Irish-owned banks, totaling some $575 billion, would be insured for the next two years. It later broadened the guarantee to cover savings in five foreign-owned institutions.  >Poll: Should Countries Guarantee Deposits?>More Europe News

Reports of Greek savers rushing to withdraw their cash prompted the country's cabinet to pledge protection for all bank deposits, regardless of their size, on Oct. 2. The increase would have to be approved by Greece's parliament.  >Poll: Should Countries Guarantee Deposits?>More Europe News

Despite earlier criticism of Ireland's move, Germany quickly followed suit on Oct. 5,  saying it would guarantee all private bank accounts, an estimated $85 billion in savings. The move came as the government stepped in to shore up the giant Hypo Real Estate.>Poll: Should Countries Guarantee Deposits?>More Europe News

Denmark guaranteed all of its bank deposits on Oct. 6, in a deal funded by the country's commercial lenders, which agreed to provide as much as $6.5 billion over the next two years. The sum is equal to 2 percent of the country's gross domestic product. » Poll: Should Countries Guarantee Deposits?» More Europe News

The Swedish government announced plans to double its bank deposit guarantee to $71,310 on Oct. 6. Swedish Finance Minister Anders Borg said the decision was part of the "crisis management."  >Poll: Should Countries Guarantee Deposits?>More Europe News

The Austrian government looks set to be the next European country to protect its savers' money by upping its guarantee threshold. Austrian Vice Chancellor and Finance Minister Wilhelm Molterer claimed claimed the country's banks are stable, but said such a move would prevent funds flowing to neighboring Germany. >Poll: Should Countries Guarantee Deposits?>More Europe News

British consumers, still reeling after Northern Rock suffered the first UK bank run in more than a century, got some reassurance from the country's government, which upped the guarantee ceiling from around $61,600 to $89,000. The UK is under pressure to raise its guarantee again. >Poll: Should Countries Guarantee Deposits?>More Europe News

The French government was also feeling the pressure to match other European bank guarantees. It currently has a maximum compensation limit of 70,000 euros ($95,200). Meanwhile, French bank BNP Paribas acted to stem outflows from Fortis and Dexia by buying up the banks' assets. >Poll: Should Countries Guarantee Deposits?>More Europe News

The Italian government called for a more united response and a Europe-wide bailout plan. Italy's Interbank Deposit Protection Fund currently covers 103,291.38 euros ($140,476.28) per depositor.» Poll: Should Countries Guarantee Deposits?» More Europe News

Iceland's government has been hastily putting together plans to help the Nordic country's financial situation and calling on pension funds to repatriate cash as it scrambles for foreign currency. Iceland's banking minister sought to assure investors by saying plans were "well under way". >Replay Slideshow>Poll: Should Countries Guarantee Deposits?>More Europe News