Einlagensicher

Einlagensicher is a German term that translates to "deposit insurance" in English. It refers to a system of protection for bank depositors in the event of a bank's failure. In Germany, the Einlagensicherung is provided by the German Deposit Insurance Fund (Eingabesicherung), which is a public institution established under the supervision of the Federal Financial Supervisory Authority (BaFin).

The primary purpose of Einlagensicher is to ensure that depositors' funds are protected up to a certain limit, typically €100,000 per depositor per bank. This means that if a bank fails, the German Deposit Insurance Fund will cover the depositors' losses up to this amount. The system aims to restore confidence in the banking system and prevent the spread of bank failures.

The Einlagensicher system is mandatory for all banks operating in Germany. Banks are required to contribute to the German Deposit Insurance Fund based on their assets and liabilities. The contributions are used to cover potential losses in the event of a bank failure.

In addition to the deposit insurance, the German Deposit Insurance Fund also provides other forms of support to banks, such as liquidity assistance and financial restructuring. This comprehensive approach helps to maintain the stability of the German banking system and protect depositors' interests.