After the collapse of Greensill Bank, the Association of German Banks (BdB) is restructuring its deposit insurance.

The private banks will reduce the scope of protection of customer deposits and gradually introduce upper limits by 2030.

"The Greensill case marks a turning point here," said Christian Sewing, bank president and CEO of Deutsche Bank, on Wednesday at an online press conference.

At the same time, he assured private savers that they would continue to benefit from efficient and extensive deposit protection in the future.

Markus Frühauf

Editor in business.

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"The security of their funds is a top priority for private banks," Sewing emphasized.

According to him, deposit insurance is focused on its core task: protecting those who really need it.

For 98 percent of savers, nothing will change in practice - their deposits will continue to be fully protected, Sewing promised.

For private savers and foundations, a maximum of 5 million euros per bank is insured from January 1, 2023, and 3 million euros in 2025.

In 2030, when the reform is to be completed, it will be a maximum of one million euros.

The scope of protection for companies will amount to a maximum of 50 million euros from 2023. It will decrease to 30 million euros in 2025 and to 10 million euros per bank in 2030. The statutory deposit protection remains unaffected by the reform, which in the event of bank difficulties extends to up to 100,000 euros per customer and bank. For deposits above this limit, the banking association's voluntary deposit protection scheme, which is now being reformed, takes effect. On the other hand, savings banks and Volksbanks promise institute protection: every member bank in their association is caught in an imbalance so that all customer deposits are fully guaranteed. 

Even after the collapse of Maple Bank, the banking association had to reduce the scope of its voluntary deposit insurance. Professional investors such as certain investment firms and financial institutions as well as federal, state and local authorities were excluded. The Greensill case hit several municipalities that had invested funds there. In the future, the banking association will no longer protect insurers, fund companies and public institutions and corporations. At Greensill, broadcasters and public utilities had made deposits. 

The Greensill Bank was closed by the financial regulator Bafin in early March.

The banking association had to pay out a total of 3 billion euros to customers, including 2 billion euros through its voluntary deposit insurance.

The BdB auditing association responsible for the protection system is also being reformed.

Its risk management systems are intended to detect possible dangers earlier.