Deposit Protection Germany

[Amber08]

Anyone any experience of dealing with Commerzbank ?
How do they compare to DB ?
What is the value of Deposit protection for German Deposit A/c's.

Had looked at opening an account some time ago but didn't understand what was contained in point 9. below ? Any help would be much appreciated.

9. Information concerning the scope of the deposit insurance
Commerzbank AG is a member of the Deposit Insurance Fund of the Bundesverband deutscher Banken e.V. and of the Entschädigungseinrichtung deutscher
Banken GmbH.
As a result, any liabilities shown under the balance sheet item “Liabilities towards customers“ are insured. This includes sight, term and savings deposits,
including savings certificates registered in the name of the holder. The insurance limit for each creditor is 30% of Commerzbank‘s capital liable under the
deposit insurance. Liabilities for which Commerzbank AG has issued bearer instruments, such as bearer debentures and bearer certificates, are not covered
by the insurance, nor are liabilities towards banks. In the case of loss of securities, the latter are insured up to
EUR 20,000, with an amount of 10% to be borne by the customer.​

I have been made aware of the fact that there is no deposit insurance protection for bearer debentures issued by Commerzbank AG.

 

[MoM]

Commerzbank are in more trouble than any german bank, do a google, although DB are more leveraged. But even DB didnt need government capital in 2008. Commerzbanks shares tanked massively last week. Look up a German newspaper for this.

 

[Amber08]

Thanks MoM appreciate your help.

 

[kdoc]

Aren't German (and French) banks the most exposed in Europe?

 

[Gringo]

Commerzbank are enormous and have enormous exposure to Italy in particular. I wouldn't buy shares in them, buy I have no problem with depositing money with them. Shareholders are selling because they will probably have their holdings diluted by recapitalisation. Depositors should welcome recapitalisation.

Two things to remember - Germany is not broke, and like they already did in 2008, they can and IMO will recapitalise Commerzbank with public funds if necessary. Secondly - if they did let it go under, you have the German deposit guarantee scheme to fall back on. That is a world away from the Irish government promising they'll cover you.

Great widget here for seeing how different banks are stressed.
graphics.thomsonreuters.com/11/07/BV_STRSTST0711_VF.html