This is undoubtedly true.
My point was, simply saying “you have protection” needs to be received with some modicum of critical thought, sadly lacking in one or two posters’ advice generally on this forum.
British customers of UK banks which are members of a foreign deposit protection scheme surely have to take into account they will be inevitably dealing with a foreign government, in a language they may not understand. There will be form–filling, communication, and information posted on websites which I imagine will be in German (or Lithuanian, or even Greek or Bulgarian which both use different alphabets) and whilst translation is always possible, customers should bear in mind that when things go wrong like this (such as in 2008) events are often fast–moving and the prevailing emotion can quite often be panic. Breaking news about a failing German bank may not be covered in the same depth in the UK media, and access to German news sources may be limited and in German, adding to the sense of unease.
Which may all be fine for a small contingent of brash, young, confident fintech enthusiasts here, but I would suggest might make the vast majority of British customers (including young people) feel there is too much of a barrier in using a foreign bank, when there is more than enough choice in the home market.
It is vital, however, to remember that when this actually happened in 2008 to the entire Icelandic banking sector, a court ruled that the ‘protection’ didn’t actually apply to British and Dutch customers, and that the Icelandic authority didn’t have enough money anyway to finance that ‘protection’. The UK and Dutch governments stepped in and invoked their own, separate protection schemes to stem the financial panic, leading to a lengthy dispute with Iceland about its fiscal responsibilities. There is nothing to say that would happen again with a foreign scheme as it would be a decision for the Chancellor of the day to take.
I was never calling into doubt the protection offered (or the ability of Germans to speak English) I was simply making the point that one needs to evaluate what you are realistically dealing with.