The term “deposit business” is defined in Section 1 para. 1 sentence 2 no. 1 of the German Banking Act (KWG) and constitutes to a sub-category of banking business.
Deposit business refers to a situation where third-party funds are accepted as deposits or other unconditionally repayable funds of the public on a commercial level or to an extent which requires business operations to be set up in a commercial manner, insofar as the right to repayment is not securitised by way of bearer or order bonds and irrespective of whether any interest is paid thereon.