{"id":1365,"date":"2014-11-10T12:50:57","date_gmt":"2014-11-10T17:50:57","guid":{"rendered":"http:\/\/olduvai.ca\/?p=1365"},"modified":"2014-11-10T12:50:57","modified_gmt":"2014-11-10T17:50:57","slug":"column-it-begins-germanys-banks-lower-the-deposit-guarantee-scheme-sprout-money","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=1365","title":{"rendered":"Column: It Begins. Germany\u2019s Banks Lower The Deposit Guarantee Scheme. | Sprout Money"},"content":{"rendered":"<p><a href=\"http:\/\/sproutmoney.com\/column-begins-germanys-banks-lower-deposit-guarantee-scheme\/9361\/\">Column: It Begins. Germany\u2019s Banks Lower The Deposit Guarantee Scheme. | Sprout Money<\/a>.<\/p>\n<p><span class=\"Apple-style-span\" style=\"color: #434343; font-family: Helvetica, Arial, sans-serif; font-size: 15px; line-height: 24px;\">In a surprising move, the consortium of German banks has announced that the insured amounts under its mutual deposit guarantee will be lowered from January 2015 on. German newspaper Die Welt broke the news and even though this doesn\u2019t change the state guarantee on deposits on savings accounts, banks seem to be finally giving up the idea that their mutual guarantee scheme will be able to cover collapsing banks.<\/span><\/p>\n<p style=\"padding: 0px; margin: 0px 0px 1em 0px;\">The importance of this news shouldn\u2019t be underestimated as the fund which has 165 members had to compensate bank clients in 30 cases since it was created, and according to industry experts, the bank fund was a very important reason why bank runs haven\u2019t really occurred in Germany.<\/p>\n<p style=\"padding: 0px; margin: 0px 0px 1em 0px;\">Until now, the banks\u2019 mutual fund had to secure and guarantee at least 30% of the equity capital of the institutions, but this ratio will now be reduced to 20% in January 2015 and further reduced to 8.75% in 2025. This means that in for instance Deutsche Bank\u2019s case which had an equity position of $70B, the mutual deposit guarantee scheme would no longer guarantee $21B, but just $6.1B from 2025 on and this is a serious reduction and actually undermines the credibility of the German banking system.<\/p>\n<p style=\"padding: 0px; margin: 0px 0px 1em 0px;\">&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Column: It Begins. Germany\u2019s Banks Lower The Deposit Guarantee Scheme. | Sprout Money. In a surprising move, the consortium of German banks has announced that the insured amounts under its mutual deposit guarantee will be lowered from January 2015 on. German newspaper Die Welt broke the news and even though this doesn\u2019t change the state [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[52,1011,359],"class_list":["post-1365","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank","tag-deposit-guarantee","tag-germany"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1365","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1365"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1365\/revisions"}],"predecessor-version":[{"id":1371,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1365\/revisions\/1371"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1365"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1365"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1365"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}