Defines key terms for the Directive: "deposit guarantee schemes" (DGSs) and "institutional protection schemes" (IPS); "deposit" as a credit balance repayable under applicable legal and contractual conditions (including fixed‑term and savings deposits) with specified exclusions; "eligible deposits" (those not excluded by Article 5) and "covered deposits" (the part of eligible deposits up to the coverage level); "depositor" and "joint account"; and "unavailable deposit" where administrative or judicial authorities suspend repayment rights for reasons directly related to a credit institution’s financial circumstances.

Further definitions cover "credit institution" and "branch"; "target level" as the DGS resource requirement expressed as a percentage of covered deposits; "available financial means" (cash, deposits, low‑risk assets and payment commitments); "payment commitments" as irrevocable, fully collateralised obligations with unencumbered low‑risk collateral; "low‑risk assets" per CRR or equivalent; home/host Member State, competent, designated and resolution authorities; "client funds deposits"; the Union State aid framework; references to EU money laundering and terrorist financing definitions; treatment of DGS administrators as competent authorities under Regulation 1093/2010; and that most shares in Irish building societies are treated as deposits except certain capital shares in Article 5(1)(b).