Deposit protection fund

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Deposit Protection Fund form part of the deposit insurance of credit institutions for the protection of bank deposits of investors in the event of insolvency . In addition to voluntary protection systems, there are statutory regulations (in Germany the Deposit Protection Act and the Deposit Protection and Investor Compensation Act ).

Europe

The European Union requires deposit protection funds in every EU member state .

Germany

General

Funds are maintained by the banks in such a way that all banks belonging to the deposit protection fund pay in a certain amount every year. The contribution to be made by each bank depends on the company's turnover and creditworthiness . In Germany, GBB-Rating is commissioned to assess the risk in the private deposit protection fund. In the statutory deposit insurance scheme, regulatory ratios and external ratings are used as scalar factors.

The voluntary deposit protection fund of the Federal Association of German Banks was founded in 1976 and today exists alongside the statutory compensation scheme of German banks that has existed since 1998 .

With the voluntary security fund of the private banks, there was a security limit until December 31, 2014, which is 30% of the relevant liable equity of the respective bank per creditor. With a bank's liable equity capital of, for example, 100 million euros, the assets of each individual customer are secured with up to 30 million euros, provided the fund has the appropriate funds. The security limit will be gradually reduced: From January 1, 2015, the security limit per creditor will be 20%, from January 1, 2020 initially 15% and from January 1, 2025 then 8.75% of the bank's liable equity capital that is relevant for deposit protection.

In contrast to this, the security funds of the savings banks and cooperative banks secure the respective institutions, so that not only the deposits, but also bonds and certificates are fully secured at the cooperative banks and savings banks.

The deposit protection fund protects all non-bank deposits, i.e. the assets of private individuals, commercial enterprises and public authorities. The protected deposits are essentially sight deposits on current accounts, time deposits and savings deposits as well as registered savings bonds. Bonds, certificates and profit participation rights from banks are not protected by the deposit guarantee. Fund investments or securities that customers have in custody at banks are not recorded by the deposit protection fund because these are not deposits at the bank, but the bank only holds them on behalf of the customer. They remain the property of the customer. Therefore, a backup is not required. In the event of insolvency, the customer can request the securities from his bank in writing or have his custody account transferred to another bank.

It is crucial for bank customers that banks must inform their customers before opening an account whether they belong to the deposit protection fund or not, Section 23a of the German Banking Act . Today this query can also be carried out online at the Association of German Banks .

The protection of the voluntary deposit protection fund begins where the statutory protection of the compensation scheme of German banks ends. In the event of the insolvency of a participating institution, the deposit protection fund takes over the parts of the deposit that exceed the EUR 100,000 limit up to the respective protection limit.

Not all institutions belong to the voluntary deposit protection fund. According to the Deposit Protection and Investor Compensation Act (EAEG), however, all banks that conduct the deposit business in a private legal form belong to the statutory compensation scheme of German banks. Exceptions to this only apply to branches of deposit-taking credit institutions from EEA member states that bring their collateral with them from their home country. For banks that are not members of the voluntary deposit protection fund, only the statutory compensation applies in the event of insolvency. From June 30, 2009 to December 31, 2010 statutory compensation was guaranteed up to an amount of 50,000 euros. A new EU directive came into effect on January 1, 2011, whereby EU member states are obliged to pay statutory compensation of 100,000 euros.

Existing deposit protection funds

The existing funds are

Legal claim

The customer has no direct legal claim against the fund of his financial institution for the services of a voluntary deposit protection fund. The fund serves to stabilize the institutes connected to it in the event of a crisis. Adequate performance is not guaranteed in an all-encompassing banking crisis .

With the guarantee fund and guarantee association of the cooperative banks , however, as with the savings banks, primarily the existence of the respective bank is guaranteed so that the investors in a Volksbank, Raiffeisenbank or savings bank should not be harmed from the outset. As with the private banks, this system is also designed to support individual institutions, not for an industry-wide financial crisis. The BVR protection scheme , which consists of a guarantee fund and a guarantee network and is fed by contributions from the affiliated banks, is the first and oldest bank protection system in Germany. Right from the start (at the beginning of the 1930s as a result of the global economic and banking crisis at the time ), it was always able to ensure that all banks involved were able to meet their financial obligations. Since its inception, no customer of an affiliated Volksbank or Raiffeisenbank has suffered a loss of his deposits, depositors have never had to be compensated and there has never been an insolvency of an affiliated bank. The same applies to the savings banks operating in Germany.

United States

When it comes to deposit insurance in the USA, five factors are taken into account in the so-called CAMEL rating:

The ultimate goal of CAMEL is to identify credit institutions whose weaknesses require the attention of regulators. The overall rating is expressed on a scale from 1 to 5, "1" means the highest rating and the lowest degree of danger, while "5" means the lowest rating.

However, this deposit insurance is not an insurance. The Federal Deposit Insurance Corporation is the closest thing to the Deposit Protection Fund .

See also

Individual evidence

  1. ↑ Questions and answers on harmonized European deposit insurance. Federal Ministry of Finance , October 22, 2014, accessed on October 17, 2015 .
  2. ↑ Compensation Scheme of German Banks - edb-banken.de. Retrieved December 12, 2019 .
  3. ↑ Deposit insurance for private banks - brief information (PDF; 1 MB). Association of German Banks , as of January 2016, accessed on February 14, 2016.
  4. ↑ Deposit insurance . Tagesgeld.org, accessed on January 5, 2011, today Directive 2014/49 / EU of the European Parliament and of the Council of April 16, 2014 on deposit guarantee schemes .
  5. ↑ Exclusion of legal claims , see below a. § 6 No. 10 of the statutes of the voluntary deposit protection fund of the Federal Association of German Banks or § 13 of the statutes of the deposit protection fund of the Federal Association of Public Banks of Germany VÖB
  6. ↑ Established case law , see e.g. B. BGH, judgment of March 18, 2008 - XI ZR 454/06 -, http://juris.bundesgerichtshof.de/cgi-bin/rechtsprechung/document.py?Gericht=bgh&Art=en&nr=43551&pos=0&anz=1

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