Deposit guarantee schemes (DGS) reimburse up to a certain amount to compensate depositors whose bank has failed. A fundamental principle underlying DGS is that they are funded entirely by banks, and that no taxpayer funds are used.
Under EU rules, deposit guarantee schemes
protect depositors’ savings by guaranteeing deposits of up to €100 000
help prevent the mass withdrawal of deposits in the case of a bank failure, which can create financial instability
The EU has gradually increased the level of deposit protection since the first directive for DGS was introduced in 1994.
The FDIC is primarily funded through assessments, which are insurance premiums paid by FDIC-insured institutions. These assessments are based on the balance of insured deposits and the risk posed by each bank. Additionally, the FDIC’s Deposit Insurance Fund is invested in U.S. Treasury securities, earning interest that supplements the premiums paid by banks.
https://finance.ec.europa.eu/banking/banking-regulation/deposit-guarantee-schemes_en
Similar with the US FDIC:
The FDIC is primarily funded through assessments, which are insurance premiums paid by FDIC-insured institutions. These assessments are based on the balance of insured deposits and the risk posed by each bank. Additionally, the FDIC’s Deposit Insurance Fund is invested in U.S. Treasury securities, earning interest that supplements the premiums paid by banks.