Author: Christos Gortsos
Publisher:
ISBN:
Category :
Languages : en
Pages : 36
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Book Description
Even though the primary function of deposit guarantee schemes (DGSs) is to serve as 'paybox' for bank depositors, provide protection to retail depositors, act as a buffer in the event of a banking crisis and contribute to safeguarding the stability of the banking system, DGSs' financial means may also be used in order to contribute to the financing of bank resolution, where the conditions for resolution are met. The main focus of the present study, structured in four Sections, is to discuss the existing EU rules governing the role of national DGSs in resolution financing under the Deposit Guarantee Schemes Directive (DGSD) and the Bank Recovery and Resolution Directive of the European Parliament and of the Council (BRRD). The role of the European Deposit Insurance Scheme (EDIS) and the Deposit Insurance Fund (DIF) (only for the Member States participating in the Single Supervisory Mechanism (SSM)) in resolution financing on the basis of the Commission's (still pending) proposal for a Regulation is also briefly presented. Finally, the study addresses the existing asymmetries in the overall structure of the current and the upcoming system of EU banking law pertaining to the 'contribution to resolution financing' function of DGSs, and concludes with a modest proposal to overcome them.
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: 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: F. Arnaboldi
Publisher: Springer
ISBN: 1137390875
Category : Business & Economics
Languages : en
Pages : 166
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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: Christos V. Gortsos
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
Author: Sven Schelo
Publisher: Kluwer Law International B.V.
ISBN: 9403519150
Category : Law
Languages : en
Pages : 201
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Book Description
Bank Recovery and Resolution Second Edition Sven Schelo Since 2008, enormous efforts have been made worldwide to draft rules to prevent a reoccurrence of the devastating financial events of that year. In the process, bank business has been laid open to intense public and government scrutiny, and regulation of banking has grown to spectacular proportions. Prominent among the measures taken is the EU Bank Recovery and Resolution Directive (BRRD), which, together with the Single Resolution Mechanism (SRM) and the Single Resolution Fund, constitutes a crucial new pillar in the European Banking Union. Practitioners searching for orientation in what can readily be perceived as a ‘jungle’ have an urgent need for a clear and systematic description and analysis of these new rules, which are sure to have a massive impact on bank business from this time on, not only in Europe but also wherever European business is to be found. The solidly grounded analysis in this important book sets the new rules under BRRD into their full context as cross-border phenomena. With its crystal-clear explanation of key provisions, procedures, and ‘triggers’, the book organises a highly complex legal system into patterns and action plans that can be applied in virtually any eventuality likely to arise in cases where bank business is of central significance. Among the topics covered are the following: – entities covered by BRRD; – exceptions under BRRD; – objective and scope of BRRD tools – bail-in, bridge bank, sale of business, asset separation; – asset quality reviews; – curing or mitigating the continuing problem of non-performing loans; – new rules as response to lack of private solutions; – banks’ requirement to provide a minimum amount of eligible liabilities; – safety buffers to protect resolution; – need to be ‘resolvable’ in a worst case; – leverage and liquidity ratios; – forced mergers; – market spillover effects of recovery planning; – group recovery planning; – effects of foreign law contracts and assets; – write-down of capital instruments; and – special problems of cross-border restructuring. The presentation is enhanced by a comparative dimension, which includes reference to United States and other national developments and a full-scale analysis of Switzerland’s regulatory response to the crisis. Given that a full seamless global system of bank recovery and resolution has not yet been found, and that major banks are global players headquartered in different jurisdictions and even different continents, this book will greatly assist in the work of practitioners who must deal with cases involving international banking under the prevailing status quo. Its usefulness to officials and academics in international banking and finance law and policy, who are working towards a global solution, is of incalculable value.
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: Djurdjica Ognjenovic
Publisher: Springer
ISBN: 3319511432
Category : Business & Economics
Languages : en
Pages : 326
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Book Description
This book provides a comprehensive overview of funding arrangements for explicit deposit insurance schemes. Responding to international guidelines and best practice, it discusses policy decisions and operational challenges which deposit insurers face in the financial management of ex-ante deposit insurance funds. Numerous examples are provided, and solutions offered on sources and uses of funds, focusing on target and optimal funding. Coverage includes: the role that modern deposit insurance schemes play in ensuring financial stability how to design the main deposit insurance features in order to maximize compliance with international standards the different types of funding and financial planning for deposit insurance methods for setting the target fund size level optimal deposit insurance funding challenges faced by the European Union members following new deposit insurance and bank resolution directives. The book concludes by providing a comprehensive overview of funding issues and recommendations for deposit insurance schemes in the European Union.
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: Maria Gerhardt
Publisher:
ISBN:
Category : Banks and banking
Languages : en
Pages : 14
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Book Description
With the financial crisis, citizens suddenly realized that different levels and forms of depositor protection co-existed in the EU, whereas they had been told for almost 20 years that a single market was in place. Current deposit insurance arrangements in Europe need to be changed, as they match neither market integration nor consumer expectations. But deposit insurance cannot be considered in isolation; it is part of the broader financial safety net and the crisis resolution tools for banks. Confronted with the question of what action should be taken to draw the right lessons from the crisis, practically the only option is an EU-wide fund, but policy-makers are still hesitant. Any intermediate solution will maintain too many distortions and imperfections and will not provide a coherent response to current challenges. This policy brief reviews current policy discussions on deposit insurance in the EU. It looks at the role of deposit insurance as part of the (European) financial safety net and examines the Commission's recent proposal to amend the EU Directive on deposit guarantee schemes (DGS). The three options for a European DGS are assessed, followed by conclusions and recommendations.--Publisher description.
