Joint Liability Scheme
The Guarantee System of the Savings Bank Finance Group
All the local savings banks, as well as the Landesbanken and the Landesbausparkassen are affiliated to the guarantee system of the Savings Bank Finance Group.
The Joint Liability Scheme is made up of a total of 13 guarantee schemes:
- the eleven regional savings bank guarantee funds,
- the Guarantee Fund of the Central Savings Banks and Central Giro Institutions, and
- the Guarantee Fund of the Central Building Societies.
The purpose of the guarantee funds that have been integrated into the Joint Liability Scheme is to safeguard institutions as defined in Section 12 of the German Deposit Guarantee and Investor Compensation Act. The guarantee funds protect the affiliated institutions, and in particular safeguard their liquidity and solvency. This ensures that each institution can continue to meet its financial obligations. Claims of depositors – in particular from savings deposits, time deposits and sight deposits as well as claims evidenced by certificates – can therefore be fully satisfied when they mature.
The Joint Liability Scheme provides a maximum degree of reliability for customers of the Savings Banks Finance Group. Since the establishment of the Guarantee System of the Savings Banks Finance Group in the 1970s
- no customer of a member institution has ever lost his or her deposits;
- it has never been necessary to indemnify depositors;
- no member institution has ever defaulted on its financial obligations, let alone become insolvent.
