Security scheme of the Federal Association of German Volksbanks and Raiffeisenbanks

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The protection scheme of the Federal Association of German Volksbanks and Raiffeisenbanks is an institution protection system of the Federal Association of German Volksbanks and Raiffeisenbanks .


The security scheme was founded in 1934 as a result of the global economic crisis and the associated German banking crisis . It is the world's oldest exclusively privately financed security system for banks.

Since the establishment of the protection scheme, a customer of an affiliated bank has never suffered a loss of his deposits. In addition, a customer has never had to be compensated because the institute's protection has never led to a compensation case.


The security scheme has the task of permanently securing the trust of customers as well as the money and capital markets in the cooperative financial group by averting or remedying threatening or existing economic difficulties at the affiliated banks in accordance with its statute (so-called institution protection) and thereby providing comprehensive protection of customer deposits guaranteed. In order to fulfill this task, the protection scheme takes preventive measures in particular to avert undesirable developments at the banks involved and, if necessary, carries out restructuring measures in favor of banks.

Which institutions are members of the protection scheme

All member banks of the BVR are included in the protection scheme. Examples of this are the Volksbanken and Raiffeisenbanken , savings and loan banks , PSD banks , Sparda banks , church credit unions, central banks and mortgage banks as well as other special institutions of the financial association such as Bausparkasse Schwäbisch Hall .

Functioning of the security device

The BVR protection scheme works preventively in order to identify possible undesirable economic developments at the cooperative banks at an early stage, to provide significant support to the institutes on the way to their economic realignment and thus ultimately to prevent funds from being drawn from the protection fund. If an affiliated bank encounters economic difficulties, the so-called institute protection comes into play: the bank is supported by measures taken by the security scheme and placed in such a way that it can fully meet its legal obligations.

Scope of protection

The protection scheme protects the investments of non-banks in full and without any limit on the amount of customer deposits, including essentially savings deposits , savings bonds , time deposits and sight deposits and bearer bonds issued by affiliated banks owned by customers. Also certificates that were issued by a member of the security device are protected against the failure of the issuer, as they are a special type of bearer bonds in general. All of these deposits are considered to be gilt-edged .

Deposits by credit institutions with member companies are generally not protected. These deposits are only protected if the investment companies are part of the fund's assets or if they are funds that are made available by credit institutions outside the cooperative financial group for publicly funded purposes.

Performance of the protection scheme

The protection scheme has a guarantee fund fed by contributions from the affiliated banks and a so-called guarantee association made up of supplementary guarantee declarations from the banks involved. These two funds are assets of the BVR and are managed by it. The guarantee fund funds are to be invested as special assets of the BVR separately from its other assets. The performance of the protection scheme is not based solely on the volume of the fund, but can also be supported by the creditworthiness of the entire cooperative financial group.

With the means of the guarantee fund, restructuring measures are only carried out by the security scheme in favor of a member bank if the bank itself is not in a position to overcome its threatened or existing economic difficulties on its own. Guarantees, interest-bearing and non-interest-bearing loans and grants are granted at the expense of the guarantee fund. At the expense of the guarantee association, which is only used in exceptional situations, only sureties and guarantees are assumed.

Change in the organization of the protection scheme

In response to the recent financial crisis, the European banking union a. Fundamentally reformed the Deposit Protection Directive. With the entry into force of the new Deposit Protection Act on July 3, 2015, in addition to the BVR protection scheme, the BVR Institutssicherung GmbH, recognized as a statutory deposit protection system, exists. The background to this dual structure is the necessary adaptation of the protection scheme of the Federal Association of German Volksbanks and Raiffeisenbanks (BVR) to the new EU directive on the harmonization of deposit protection systems that applies to all credit institutions in Europe. In order to comply with the EU directive, in addition to the existing BVR security scheme with its institute protection, a separate company was founded as a wholly owned subsidiary of the BVR called BVR Institutssicherung GmbH , which guarantees the statutory deposit protection of up to 100,000 euros, but at the same time the institute protection for the banks of the cooperative Financial group provides. The BVR protection scheme remains a voluntary, organized and managed self-help scheme of the cooperative financial group. The BVR protection scheme acts as additional, cooperative protection in the so-called dual system parallel to BVR Institutssicherung GmbH.

Testing and monitoring of the protection scheme

The BVR prepares annual financial statements and an annual report on the activities and financial situation of the protection scheme. The annual financial statements and business report audited by an external auditing company that does not belong to the cooperative financial group are sent to the Federal Financial Supervisory Authority (BaFin), the Deutsche Bundesbank , the cooperative auditing associations and the BVR administrative board in accordance with Section 39 of the BVR protection scheme's statutes . The latter body monitors the management of the BVR board within the framework of the protection scheme. The BVR protection scheme is subject to supervision and monitoring by the Federal Financial Supervisory Authority. BaFin is also entitled to information and audit rights vis-à-vis the protection scheme in accordance with Section 44 (1) of the German Banking Act.

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