Germany’s Federal Financial Supervisory Authority (BaFin) has established the compensation case for collapsed North Channel Bank clients. The bank is not able to repay its customers’ deposits in full. The deposits of North Channel Bank’s customers are protected under the Deposit Protection Act. The Bank is a member of the Entschädigungseinrichtung deutscher Banken GmbH (EdB).
On January 19, 2023, BaFin applied with the Mainz District Court to open insolvency proceedings against North Channel Bank. The following day, the court ordered the provisional administration of the assets of North Channel Bank and appointed a temporary
provisional insolvency administrator. On January 25, 2023, the Local Court of Mainz now officially opened insolvency proceedings against the bank’s assets.
With the determination of the compensation case by the BaFin, the prerequisite is met that the compensation of the claims can be started. The maximum per client is €100,000 euros. In exceptional cases, the amount of compensation may be higher. The EdB will contact the institution’s creditors on its own initiative shortly.
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