BaFin decides: Here’s how North Channel customers get their money back

The Federal Financial Supervisory Authority (BaFin) has determined that the bank, also involved in the cum-ex scandal, must pay compensation because “due to financial difficulties, the institute is unable to reimburse deposits which he has done”.

This means that the compensation scheme for German banks is now liable for credit balances up to 100,000 euros at North Channel. In addition, North Channel GmbH & Co. KG was a member of the voluntary deposit protection fund of the Association of German Banks (BdB). This has the advantage for investors that, according to the BdB, assets are even protected up to a security limit of EUR 3.268 million per depositor.

German private banks contribute to the deposit protection fund of the BdB. The savings banks and Volks- und Raiffeisenbaken have their own deposit guarantee schemes.

According to the BdB, the private banks’ deposit protection fund will now “soon contact the depositors, also on behalf of the EdB, in order to proceed with the compensation,” it said in a statement on Wednesday.

German deposit insurance law stipulates that investors receive their money within seven working days of the determination of the indemnification event. According to BaFin, the deposit protection fund also voluntarily observes this deadline.

Investors can still access securities accounts with North Channel. They do not belong to the bank and are therefore not part of the bankruptcy estate, unless they have been pledged.

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