Author: Tomasz Knepka
Publisher:
ISBN:
Category :
Languages : en
Pages : 10
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Book Description
Following the global financial crisis, the European financial safety net, under which taken at European level steps to fully harmonize deposit guarantees, has been modified. The European deposit guarantee scheme is now an important part of the financial puzzle in the area of managing the potential financial turmoils on the internal market of the European Union. The article presents three stages of creating a deposit guarantee scheme. The first covers the normative origins of these guarantees, then the deposit guarantees in the face of the crisis, and the deposit guarantee scheme as a part of the established European Banking Union.
Author: International Monetary Fund. Monetary and Capital Markets Department
Publisher: International Monetary Fund
ISBN: 1475516576
Category : Business & Economics
Languages : en
Pages : 31
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Book Description
This article is an overview of existing deposit insurance in the European Union. There are various national deposit schemes that form the source of insurance. The schemes come up with various coverage, contributions, and fund sizes. The recent financial crisis has brought about a change in the coverage system. The main intention of this insurance is to enhance financial stability. The role of this insurance varies both within the EU and worldwide. This insurance is important to sustain financial integration and internal functioning.
Author: Sydney J. Key
Publisher: CEPS
ISBN: 9290791500
Category : Deposit insurance
Languages : en
Pages : 53
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Book Description
Analisis del problema de la armonizacion comunitaria de los sistemas de garantia de depositos.En primer lugar estudia si es mas conveniente un sistema controlado por el pais de origen o por el pais de acogida de las instituciones financieras. A continuacion analiza como se debe realizar la armonizacion para conseguir los objetivos de estos sistemas: proteger a los consumidores y evitar riesgos del sistema, minimizar el riesgo moral y evitar las distorsiones en la competencia. Para ello trata las cuestiones de nivel y amplitud de la proteccion, estructura administrativa y financiera, normas de operacion, y relacion con el Banco Central Europeo. Incluye bibliografia y el texto de la propuesta de directiva sobre sistemas de garantia de depositos de 14 de abril de 1992.(jha).
Author: Jakub Kerlin
Publisher: Springer
ISBN: 3319541633
Category : Business & Economics
Languages : en
Pages : 361
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Book Description
This book examines the changing role of Deposit Guarantee Schemes (DGSs) as a financial safety net of the European Union, with specific emphasis on post-crisis reforms. The author identifies the institutional weaknesses of DGSs and analyses their functioning in post-crisis conditions. Readers discover the extent to which the participation of DGSs in bank resolution increases effectiveness, and whether such enhancement of the financial safety net allows for the liquidation of large financial institutions. Finally, the book identifies, categorises, and analyses possible forms of involvement of DGSs in the EU resolution, as well as the proposal of methods for the quantitative measurement of the preparedness of DGSs to participate in this process.
Author:
Publisher:
ISBN: 9789276126058
Category :
Languages : en
Pages :
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Book Description
Deposit insurance protects deposits and discourages depositors from bank runs. The strength of a deposit guarantee scheme (DGS) is primarily determined by the relative strength of its member institutions (mostly banks), the level of available financial means and the guarantor. It follows the principle that banks, participating in a DGS, and not taxpayers, should pay for bank failures. In the European Union, deposit insurance has been harmonised over the past two decades. The current rules and procedures on depositor protection are set out in the Deposit Guarantee Schemes Directive (DGSD) adopted in 2014, which strengthened depositor protection by requiring faster pay-outs, more robust funding, including a minimum target level for ex ante risk-based contributions, and increased information disclosure. Deposit insurance is therefore organised at national level and guaranteed by national governments, which are required to contribute when the funds of national DGSs are insufficient. In November 2015, the Commission proposed to set up a European deposit insurance scheme (EDIS) for bank deposits in the euro area as the third pillar of the Banking Union. Negotiations on the EDIS proposal are still ongoing. The DGSD contains about 22 national options and discretions (NODs), which may be applied on the basis of national circumstances, and their relevance under EDIS was frequently addressed in the context of the negotiations on EDIS in the European Parliament and the Council. In this context, the purpose of the study is to provide an overview of the current use of NODs in the Member States and contribute to the discussion regarding their treatment under EDIS, by formulating policy recommendations, including in view of the impact on EDIS in terms of financial exposure and administrative burden.
Author: F. Arnaboldi
Publisher: Springer
ISBN: 1137390875
Category : Business & Economics
Languages : en
Pages : 247
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Book Description
Arnaboldi highlights the importance of one of the three pillars of the Banking Union, the common mechanism for insuring deposits. She claims that integrated financial markets require a European solution with regard to deposit insurance and that the establishment of a pan-European scheme could address the problems for large cross-border banks.
Author: Mr. Atilla Arda
Publisher: International Monetary Fund
ISBN: 1616358076
Category : Business & Economics
Languages : en
Pages : 27
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Book Description
This paper argues that in the European Union (EU) deposit insurance funds are too difficult to use in bank resolution and too easy to use outside resolution. The paper proposes reforms in three areas for the effective management of bank failures of small and medium-sized banks in the European Union: making resolution the norm for dealing with failing banks; establishing a common DIS for the European Union; and increasing funding and backstops for deposit insurance while removing constraints on their use for resolution measures. Without these changes, the European Union will continue to be challenged by banks that are too small for resolution and too large for liquidation.
Author:
Publisher:
ISBN: 9789279633294
Category :
Languages : en
Pages : 8
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Book Description
As stated in the Five Presidents' Report, completing the Banking Union is a fundamental step towards making the Economic and Monetary Union (EMU) more sustainable and enabling it to deliver a better life for EU citizens. The overarching goal of the Banking Union is to break the link between a Member State's banks and its taxpayers, preventing a situation in which a failing banking sector endangers the sustainability of public debt or where the unsustainability of public debt endangers an otherwise solvent banking sector. The Banking Union was devised to tackle the former aspect of this link. The current Banking Union setup, however, retains a substantial weakness: making sure citizens' deposits in banks are safe was a key element of crisis management - and overall a successful one - but as long as these Deposit Guarantee Schemes (DGSs) remain national, Member States' budgets continue to be exposed to risks in their banking sectors. A common deposit insurance scheme, on the other hand, would increase resilience against future crises. Consequently, the Five Presidents' Report proposed setting up a European Deposit Insurance Scheme (EDIS) as the third pillar of a fully-fledged Banking Union, alongside bank supervision and resolution.
Author: Julian Kopf
Publisher:
ISBN:
Category :
Languages : en
Pages : 42
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Book Description
Author: Malgorzata Iwanicz-Drozdowska
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
This study aims to assess the current institutional arrangements of guarantee schemes in three sectors of the financial services industry (banking, insurance and capital market) in EU countries. Using data collected directly from guarantee schemes and other sources, as well as bank balance sheet data, the research focuses on assessing the financial capacity of the guarantee schemes. The analysis is supported by the illustration of the consequences of a hypothetical failure of global systemically important bank (G-SIB) in the EU and separately in EU countries from Central and Eastern Europe. This is to prove that setting up a pan-European deposit guarantee scheme for banks in the banking union would create a significant financial burden for the European economy. The research points out some policy implications of how to deal with this issue.
