The insolvent North Channel Bank from Mainz cannot repay its savings itself. The financial supervisory authority BaFin therefore determined the compensation case on Wednesday. As it turns out, however, investors’ savings are extensively secured.
The North Channel Bank from Mainz is insolvent. The Federal Financial Supervisory Authority (BaFin) has now determined that the bank, which was also involved in the cum-ex scandal, is entitled to compensation, because “due to financial difficulties, the institute is not in a position to repay the deposits held with it. “
This means that the state compensation scheme of German banks is now liable for credit balances of up to 100,000 euros. In addition, the North Channel GmbH
While all banks in Germany are part of the EdB, the deposit protection fund of the BdB is fed only by the German private banks. Savings banks and Volksbanks and Raiffeisenbanks maintain their own deposit guarantee schemes.
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According to the BdB, the deposit protection fund will now “soon contact the depositors, also on behalf of the EdB, in order to make the compensation,” it said in a statement on Wednesday.
As part of the Deposit Guarantee Act, depositors must be compensated for their money within seven working days of the compensation event being determined. According to the banking association, the deposit protection fund also adheres to this deadline voluntarily.
Investors can still access securities accounts with North Channel. They do not belong to the bank and are therefore not part of the bankruptcy estate unless they have been pledged.
Depositors can obtain further information online at edb-banken.de, einlagensicherungsfonds.de or by telephone on 49 30 5900 1196 0
