SEC Form 20-F - Deutsche Bank Annual Report 2012

Deutsche Bank
Annual Report 2010 on Form 20-F
Item 4: Information on the Company 43
levied on the other participating banks. Following the increase of the protected amounts of customer claims in
2009 and 2010, our contributions to our investor compensation institution increased.
Voluntary Deposit Protection System
Liabilities to creditors that are not covered under the Deposit Guarantee Act may be covered by one of the
various protection funds set up by the banking industry on a voluntary basis. We take part in the Deposit Protection
Fund of the Association of German Banks (Einlagensicherungsfonds des Bundesverbandes deutscher
Banken e.V.). The Deposit Protection Fund covers liabilities to customers up to an amount equal to 30 % of the
bank’s core capital and supplementary capital (to the extent that supplementary capital does not exceed 25 %
of core capital). Liabilities to other banks and other specified institutions, obligations of banks represented by
instruments in bearer form and covered bonds in registered form (Namenspfandbriefe) are not covered. To the
extent the Deposit Protection Fund makes payments to customers of a bank, it will be subrogated to their claims
against the bank.
Banks that participate in the Deposit Protection Fund make annual contributions to the fund based on their
liabilities to customers, and may be required to make special contributions up to an amount of 50 % of their
annual contributions to the extent requested by the Deposit Protection Fund to enable it to fulfill its purpose. If
one or more German banks are in financial difficulties, we may therefore participate in their restructuring even
where we have no business relationship or strategic interest, in order to avoid making special contributions to
the Deposit Protection Fund in case of an insolvency of such bank or banks, or we may be required to make
such special contributions. Following financial difficulties of various German banks the annual contributions to
the Deposit Protection Fund were doubled from 2009 onwards.
Proposed Revision of the EU Directives on Deposit Guarantee and Investor Protection Schemes
On July 12, 2010, the European Commission adopted a legislative proposal for a revision of the European Union
directives on deposit guarantee and investor protection schemes. The purpose of the revision is among other
things to improve the funding of these schemes, to expand the scope of eligible deposits and to provide for a
faster disbursement of funds when the protection scheme is called. The European Commission envisages that
most of the proposed measures will become effective by 2012 or 2013. Pursuant to this proposal, deposit
protection schemes must have 1.5 % of the total eligible deposits at hand, and investor compensation schemes
0.5 % of the value of funds and financial instruments covered by the investor compensation scheme that are
held by, deposited with or managed by investment firms and collective investment schemes. There will be a ten
year transition period in this respect. In the event that the directives on deposit guarantee and investor protection
schemes are amended as proposed, the costs for deposit guarantee and investor protection schemes (and thus
our contributions to these schemes) will increase substantially.
Regulation and Supervision in the European Economic Area
Since 1989 the European Union has enacted a number of directives to create a single European Union-wide
market with almost no internal barriers on banking and financial services. The Agreement on the European
Economic Area extends this single market to Iceland, Liechtenstein and Norway. Within this market our branches
generally operate under the so-called “European Passport”. Under the European Passport, our branches are
subject to regulation and supervision primarily by the BaFin. The authorities of the host country are responsible
for the regulation and supervision of the liquidity requirements and the financial markets of the host country.
They also retain responsibility with regard to the provision of securities services within the territory of the host
country.