Change in the deposit guarantee scheme at DKB
BayernLB

19-Aug-2021

Change in the deposit guarantee scheme at DKB

Deutsche Kreditbank AG (DKB) is an integral component of the BayernLB Group and, as an innovative digital bank, plays an important part in BayernLB’s commercial success. The following changes are due to take place with respect to its deposit guarantee scheme:

In issuing the Ordinance of 8 June 2021 on the statutory compensation scheme of the Bundesverband Öffentlicher Banken Deutschlands GmbH (EdÖ), the Federal Ministry of Finance ended its mandate as a statutory compensation scheme with effect from 1 October 2021.

The Institutions currently covered by this will thus be legally assigned to the Entschädigungseinrichtung deutscher Banken GmbH (EdB), a wholly-owned subsidiary of the Association of German Banks (BdB). As such, from 1 October DKB will also be assigned to the statutory compensation scheme EdB.

As a result of DKB’s move to the EdB, the relationship between it and BayernLB will change. BayernLB has revoked and terminated the letter of comfort for DKB effective from 30 November 2021. Customers that become new customers of DKB after 19 August 2021 are not permitted to utilise this letter of comfort from this date. The Bank also intends to end the control and profit and loss transfer agreement between BayernLB and DKB at the next possible date in 2021. In return, BayernLB will provide DKB with a substantial amount of additional capital so it can maintain a market-standard capital base even without BayernLB’s letter of comfort.