The Depositor Compensation Scheme is a rescue fund for depositors of failed banks which are licensed by the Malta Financial Services Authority. The Scheme can only pay compensation if a bank is unable to meet its obligations towards depositors or has otherwise suspended payment. The Scheme is based on the EU Directive 94/19 on deposit-guarantee schemes.

The Scheme, which came into effect in September 2017, is managed by a single Management Committee which is appointed by the MFSA. This Committee is made up of persons representing the MFSA, the Central Bank of Malta, investment firms, the banks and customers.

The aim of the Depositor Compensation Scheme is to promote confidence not only in licensed institutions, but more importantly, in the financial system as a whole. In fact, the scheme is financed by banks. This means that the consumer will not be asked to contribute to the scheme.

The scheme has been introduced as an additional layer of security within a regulatory and legal framework that is already sound and not being implemented for any particular situation that has arisen in practice.

The Depositor Compensation Scheme (DCS) functionality is part of our growing BRSANALYTICS product line and can be implemented both as a standalone solution or else integrated with BRSANALYTICS. 

Our solution covers all the underlying technical aspects including versioning, rule validation, XML conversion, encryption and upload; ensuring complete and hassle-free compliance for the finance teams with a click of a button:

  • Provision of an Excel template

  • Loading data into the spreadsheet (for BRSANALYTICS integrated version) or this may be filled in manually

  • Conversion to the required XML schema (taking into consideration that XML schemas may change from time to time)

  • Validation of data being submitted against the schema and rule validation engine  

  • Support for different versions of schemas and rule sets

  • As regulators’ validations and XML Schemas change, the product will be kept updated ensure bank’s alignment

  • Data encryption and upload

Implementations are currently being carried out using a two-phased approach to ensure customers are fully conformant with the regulator’s demands for DCS compliance:


  • Provision of an Excel template along with Excel toolbar functionality to convert from Excel to the XML schema in the requested format.

  • The provision of anonymisation functionality


  • Provision of all other functionality including validation, encryption, signing and FTP upload.

Would you like to receive more information on the technical specifications of the product or a more detailed explanation on how the solution works to help improve the business processes of your regulatory division?


Contact one of our representatives for an appointment and we will be more than happy to answer any questions you may have.