On Mar. 20, 2025, GE EdB updated on calculation of annual contributions and dates.
Annual contribution is result of formula contribution rate x aggregate risk weight of CRR credit firm x covered deposits of CRR firm x correction factor, at least €20,000.
GE EdB will determine a contribution rate, correction factor for 2024/2025 accounting year on Aug. 15, 2025; further details are provided.
Contributions to compensation scheme depend on creditworthiness of assigned firms.
External rating results, account for 25% of credit rating calculation, included in notes.
Based on transformation functions, individual risk values (IRSi) assigned to calculated risk indicators, which are then combined to form a weighted individual risk value.
Using sum value (ARSi) of weighted individual risk values, an aggregated risk weight (ARWi) is determined based on 10 credit ratings using further transformation function.
On Aug. 2, GE EdB set out information on bank compensation scheme.
GE EdB set out details on contributions to Compensation Scheme of German Banks.
GE EdB is a subsidiary of GE BdB entrusted by GE BaFin with the task of handling the statutory deposit insurance and investor compensation for the banks assigned to it.
According to article 26 (1) EinSiG, the CRR credit institutions are obliged to pay annual contributions to GE EdB at end of each accounting year, annual contributions, and an accounting year cover period from Oct. 1st of one year to Sep. 30 of following year.
This content, which is undated, was received on Aug. 2, 2023 due to a new feed.
Contribution Calculation
Annual contribution is a formula of contribution rate x aggregate risk weight of CRR credit institution x covered deposits of credit institution x correction factor, of €20,000.
The compensation scheme of German banks GmbH will determine a contribution rate and a correction factor for the 2023 accounting year, based on the monies required.
Under Section 17 (2) EinSiG, GE EdB must ensure the funds available to it reach target level of at least 0.8% of covered deposits of its associated institutions by Jul. 3, 2024.
GE EdB also has to levy special contributions if it finds that its funds are not sufficient to carry out a compensation procedure, and Section 29 of EinSiG regulates the details.
The contributions to the compensation scheme depend on the creditworthiness of the institutes assigned to the scheme and an explanation can be found in as part of the Creditworthiness functions according to EntschFinV, in the version of Apr. 18, 2023.
Contribution Collection
GE EdB has developed internet platform for regular collection of annual contributions, via which a questionnaire is made available to institutes after end of May each year.
Key figures and the external rating results are to be entered in the questionnaire.
The internet access data for using the platform is sent to the banks annually by post.
The complete questionnaire must be submitted electronically via the platform mentioned together with the required documents including Asset encumbrance sheet, COREP sheets, FINREP sheets, as well as documentation of all of the valid ratings.
GBB-Rating Gesellschaft für Bonitätsbebewertungung mbH has been authorized by GE EdB to request missing or incomplete documents in connection with the collection of contributions and to coordinate discrepancies with the relevant institutions involved.
GE EdB can allow the CRR credit institutions assigned to it to provide up to 30% of their annual contribution in a billing year by assuming contractual payment obligations.
Contributions to GE EdB are due for payment on Sep. 30 of each year by institutions.
Additional Resources
As well as the main text, separate sections are provided with Questions and answers on the collection of contributions as well as on the basis of Framework agreements.
Also, on the Conditions of GE Bundesbank and on Suitable financial security to secure payment promises made to the compensation scheme of the German banks GmbH.
Effectiveness
The current contributions to GE EdB are all now due for payment by Sep. 30, 2023.
Apr. 2024 Update
On Apr. 25, 2024, GE EdB updated on contribution collection, deadlines and more.
To regularly collect annual contributions, EdB developed online platform via which a questionnaire is made available to entities from end May/beginning of Jun. each year.
A number of key figures and external rating results must be entered in questionnaire.
Internet access data for platform use sent to banks annually by post, completed questionnaire must be submitted electronically together with other documents, details.
Some documents must be sent in paper form to by Jun, 30, 2024 (listed); contribution notice will be created based on data submitted, advance payment of contributions from Mar. 2024 will be taken into account in the form of a retroactive calculation.
Contribution set in notice must be paid by Sep. 30, 2024 at the latest, is administrative act against which objection can be lodged but no suspensive effect (S32.1 EinSiG).
Per S32.2 EinSiG, law provides for possibility of enforcing contribution notice in line with the Administrative Enforcement Act; EdB can charge special contributions if it determines its resources are not sufficient to carry out a compensation procedure.
Contributions to compensation scheme depend on creditworthiness of assigned entity, explanation in Credit functions according to EntschFinV in version of Apr. 19, 2024.
Based on transformation functions, individual risk values (IRSi) assigned to calculated risk indicators, combined to form weighted individual risk value, using value (ARSi) of said values, aggregated risk weight (ARWi) set using further transformation function.
Aug. 2024 Contribution Calculation
On Aug. 20, 2024, GE EdB updated information re calculation of annual contribution.
To achieve the target level of at least 0.8% of the covered deposits on Jul. 3, 2024, GE EdB levied an advance payment on the annual contribution as of Mar. 31, 2024.
In accordance with section 34, para 3, sentence 1 EntschFinV by dec of Mar. 1, 2024.
On Aug. 15, 2024, GE EdB determined a contribution rate of 0.00100563 and a correction factor of 0.99379741 for the accounting year 2023/2024.
Nov. 2024 Contributions
On Nov. 9, 2024, GE EdB issued reminder to submit the relevant documentation in relation to annual contributions that are due for payment on Sep. 30 of each year.
Mar. 2025 Update
On Mar. 20, 2025, GE EdB updated on calculation of annual contributions and dates.
Annual contribution is result of formula contribution rate x aggregate risk weight of CRR credit firm x covered deposits of CRR firm x correction factor, at least €20,000.
GE EdB will determine a contribution rate, correction factor for 2024/2025 accounting year on Aug. 15, 2025; further details are provided.
Contributions to compensation scheme depend on creditworthiness of assigned firms.
External rating results, account for 25% of credit rating calculation, included in notes.
Based on transformation functions, individual risk values (IRSi) assigned to calculated risk indicators, which are then combined to form a weighted individual risk value.
Using sum value (ARSi) of weighted individual risk values, an aggregated risk weight (ARWi) is determined based on 10 credit ratings using further transformation function.
