[17] The funding situation at German banks is different; institutional protection schemes and voluntary deposit insurance provide an additional layer of protection for depositors. What is more, deposits with German banks are not so highly concentrated. And even banks with a higher share of uninsured deposits hold central bank balances or sight deposits with other banks enabling them to service large-scale deposit outflows.
This afternoon, Karlheinz Walch will discuss the takeaways for supervisors from the episodes of stress in the United States and the role of banks’ risk management. Banks need to adjust their business models in response to these changes in the competitive environment. Can deposits continue to be seen as a relatively stable and reliable source of funding? How many branches are needed?