Minister Gumbs Welcomes CBCS Deposit Guarantee Scheme

GREAT BAY--Minister of Finance Marinka Gumbs has welcomed the upcoming implementation of the Central Bank of Curaçao and St. Maarten’s Deposit Guarantee Scheme, describing it as a major step toward strengthening confidence in the financial sector and providing greater protection for depositors in St. Maarten. The scheme will take effect on September 28, 2026.

Gumbs commended the CBCS for advancing the initiative across the monetary union and for its continued efforts to strengthen financial stability and depositor protection in St. Maarten and Curaçao.

“The implementation of the Deposit Guarantee Scheme demonstrates the important role of the Central Bank in safeguarding confidence in our financial system. I commend the CBCS for bringing this initiative to fruition. It represents another important step in strengthening the financial architecture of our monetary union and, most importantly, providing greater protection to the people who entrust their savings to our financial institutions,” Gumbs said.

The Deposit Guarantee Scheme is designed to protect individuals and businesses holding eligible deposits at licensed banks and credit unions operating in St. Maarten. If a participating financial institution becomes unable to meet its obligations to depositors, eligible deposits will be protected up to established limits.

Under the scheme, eligible deposits at licensed banks will be protected up to Cg 50,000 per depositor, per institution, while eligible deposits held at licensed credit unions will be protected up to Cg 25,000 per depositor, per institution.

Gumbs said the scheme provides an important additional safeguard for the public and brings St. Maarten in line with international practices aimed at promoting financial stability and consumer protection.

“For many people, their bank account represents years of hard work, savings and financial planning. The Deposit Guarantee Scheme provides an additional layer of protection and reassurance that their eligible deposits are safeguarded. This is a significant step in strengthening confidence in our financial system and protecting depositors,” she said.

Explaining how the coverage would work in practice, Gumbs said a person with Cg 20,000, Cg 35,000 or Cg 50,000 in eligible savings at a licensed bank would have the full amount fall within the scheme’s protection limit.

If a depositor has Cg 78,000 in an eligible account and the institution becomes unable to meet its obligations, the scheme would protect up to Cg 50,000. The remaining Cg 28,000 would form part of the depositor’s claim against the institution and would be handled through the applicable legal resolution process.

“Should a licensed bank or credit union ever become unable to repay its depositors, the Deposit Guarantee Scheme provides a structured mechanism through which eligible account holders can recover their protected deposits. This provides an important level of certainty and security for depositors,” Gumbs said.

The Minister said the added protection will apply to people in a wide range of circumstances, from families saving for their children’s future to small business owners and residents managing everyday finances.

“Whether you are saving for your children’s future, operating a small business or simply managing your everyday finances, having funds in a licensed bank or credit union present in St. Maarten now comes with an added layer of protection,” she said.

The scheme will be funded through contributions from participating financial institutions, meaning the financial sector itself will contribute to maintaining the system designed to protect depositors and support confidence and stability within the banking sector.

Gumbs again congratulated the CBCS on reaching the milestone.

“This is what strong financial institutions should ultimately deliver: greater protection for our people and greater confidence in our financial system. I congratulate the CBCS on this important achievement for our monetary union. The Deposit Guarantee Scheme is good news for depositors, good news for our financial sector and good news for St. Maarten,” she said.

The Ministry of Finance is encouraging the public to contact their financial institution or the CBCS for additional information about the Deposit Guarantee Scheme and the coverage applicable to their accounts.

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