The Depositor Compensation Scheme (the Scheme) established in terms of L.N. 383 of 2015 which transposed EU Directive 2014/49/EU on deposit guarantee schemes, builds and maintains a rescue fund for the payment of possible claims by depositors of a failed bank.  Compensation is only paid if a bank is unable to meet its obligations towards depositors or has otherwise suspended payment and is subject to the limit of EUR100,000 per depositor (irrespective of the number of accounts held by a depositor with that failed bank). The Scheme is managed by a Management Committee (MC) whose members are appointed by the MFSA. This MC is made up of persons representing the MFSA, the Central Bank of Malta, investment firms, the Association’s member banks and consumers. However, the Scheme’s participant banks comprise the current members of the Association with the exception of those members which are branches established locally of foreign institutions. The MBA’s Secretary General is appointed as the representative of the banking sector on the MC.