Scope of deposit insurance in the context of Banking Law No. 5411

Banking systems constitute a cornerstone of financial markets worldwide. The global expansion of the banking sector has led to the emergence of "too big to fail" credit institutions. The potential failure of such large banks can have macroeconomic repercussions. To ensure confidence in the banking system and maintain stability in financial markets, various tools have been developed, with deposit insurance being one of them. The purpose of the deposit insurance system is to partially or fully compensate depositors in the event of the revocation of operating permits for credit institutions, as stipulated by law. While some countries provide complete protection to depositors through deposit insurance, others impose certain limitations on this protection. In our country, regulations regarding deposit insurance are outlined in the Banking Law No. 5411, and the implementation of these provisions is entrusted to the Savings Deposit Insurance Fund, a public legal entity. The Banking Law No. 5411 comprehensively regulates the legal protections arising from deposit insurance, specifying the conditions under which individuals can benefit. Recent amendments to the law, particularly with Law No. 7407 dated May 28, 2022, have expanded the scope of insurance. However, despite these legislative efforts, there remain aspects of deposit insurance coverage and provisions that may give rise to uncertainty in practice. The central focus of this study is to delineate the scope of deposit insurance within the current legislative framework and to concretize the provisions of Articles 63 and 64 of Banking Law No. 5411, considering recent amendments. The study critically examines deposit insurance, deposit contracts, and the scope of deposit insurance within the context of Banking Law No. 5411. It delves into potential points of contention and sources of uncertainty in the practical application of these regulations. KEY WORDS : Deposit, participation fund, banking law, deposit insurance, deposit contracts, scope of deposit insurance.