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Deposit Insurance. German experience.

28 January 2008

All banks working in the territory of German are obliged to insure free-of-charge deposits of the individual clients for the sum prescribed by the law. The majority of financial institutions guarantee full indemnity of deposits.

Germany has a double system of deposit insurance - obligatory and voluntary. According to the law “About protection of deposits and payment of damages to investors”, all German private banks, and also branches of foreign banks are obliged to make membership fees to the Fund of obligatory deposit protection (Gesetzliche Einlagensicherung). The fund protects only savings in euro and other currencies of EU member-states.


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