These, in turn, necessitate a swift reform of the sector’s institutional protection and joint liability schemes. The new EU directive requires all credit institutions to provide their depositors with statutory deposit protection cover of € by the middle of this year.
Owing to their institutional protection scheme, savings banks, Landesbanken and state building and loan associations had previously been exempted from this requirement, and thus also from mandatory membership of the statutory compensation scheme. They must therefore now adapt in order to comply with the statutory requirements, which also entails adapting their institutional protection scheme.