In some countries, the deposits can be offset with your outstanding loan during  a payout. I.e, if you have $50,000 deposits & $10,000 loan in a bank, you’ll only get back $ 40,000 when a bank fails.

No worries in Malaysia though, we don’t offset the twos. If you have $ 50,000 deposits in bank, you’ll get back your money in full. However this full coverage is until Dec 2010 only. The previous coverage was $ 60,000 per depositor per member institution.

Do you know – In Nepal, they offset the deposits against the loans. So, livestock purchased using a bank facility is also an insured product!

Tags: deposit insurance