Compensation Scheme of German Private Banks: Bankhaus Obotritia GmbH closed

On February 27, 2025, the Federal Financial Supervisory Authority (BaFin) imposed a moratorium on Bankhaus Obotritia GmbH in accordance with Section 46 of the German Banking Act (Kreditwesengesetz – KWG), thus ordering that the bank be closed for business with customers. Owing to the resulting ban on sales and payments, the bank is no longer able to allow access to deposits. 

Bankhaus Obotritia GmbH is covered only by statutory deposit protection and is assigned to the Compensation Scheme of German Banks (Entschädigungseinrichtung deutscher Banken GmbH – EdB). Where BaFin determines that compensation is payable, the EdB protects customer deposits up to an amount of 100,000 euros per depositor (coverage level). The EdB will contact depositors directly.

Bankhaus Obotritia GmbH is not a member of the Association of German Banks (Bundesverband deutscher Banken e.V.), nor does it participate in the association’s Deposit Protection Fund.

If BaFin were to formally determine that Bankhaus Obotritia GmbH is no longer able to pay back the deposits it holds (payout event), then the EdB will contact the depositors concerned directly. 

In addition, depositors are entitled to compensation for deposits of up to 500,000 euros for a period of six months after the deposit was credited if the payment was linked to certain life events, such as the sale of privately used real estate, marriage, divorce, retirement, dismissal, redundancy, the birth of a child, sickness, need for long-term care, invalidity, disability or a death. Payments which meet these requirements must be claimed separately and in writing by the depositor, who should also provide credible evidence to support the claim.

Deposit protection covers demand deposits, time deposits and savings deposits, including registered savings bonds. By contrast, liabilities in respect of which a bank has issued bearer instruments, such as bearer bonds and bearer deposit certificates, are not protected.

Securities accounts are not covered by the moratorium. These can continue to be accessed provided that the bank has no lien over the account. 

Depositors can obtain further information online at edb-banken.de or by calling + 49 30 5900 1196 0.