Regulatory Alerts2015-05-28
Deposit Guarantee Act (Einlagensicherungsgesetz, EinSiG)
The German Federal Government enacted the Deposit Guarantee Act to implement EU Directive 2014/49/EU, mandating that all CRR credit institutions guarantee deposits through membership in statutory or recognized institutional protection schemes. The legislation establishes a standard compensation coverage level of €100,000 per depositor, with a temporary increase to €500,000 for specific life-event-related funds, while explicitly excluding deposits from financial institutions, public authorities, and other professional entities. It further defines the procedures for determining compensation events by BaFin, outlines the financing and inspection of guarantee schemes, and regulates depositor information rights and administrative sanctions.
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