Full definition
Bankowy Fundusz Gwarancyjny, founded 1995, guarantees deposits held at Polish banks and SKOK credit unions. If a bank fails, BFG pays depositors up to the equivalent of EUR 100,000 per person per bank (converted to PLN on the date of insolvency). The limit covers the sum of all accounts, term deposits and debit cards at a single bank. Payouts occur within 7 business days of insolvency. Coverage extends to PLN and foreign-currency balances. It does NOT cover: bonds, equities, investment-fund units (held at TFIs, not banks), bank bonds. Since 2016 BFG also manages resolution — an alternative to bankruptcy. All banks domiciled in Poland are mandatory participants.
Concrete numeric example
Customer holds 80,000 PLN in an account + 200,000 PLN in a term deposit at Bank X = 280,000 PLN total. Bank fails. BFG cap in PLN ≈ 450,000 (EUR 100,000 × 4.50). Customer recovers the full 280,000 PLN. With 500,000 PLN on deposit, only ~450,000 PLN would be recovered.