Download or read book The Role of Deposit Guarantee Schemes as a Financial Safety Net in the European Union written by Jakub Kerlin and published by . This book was released on 2017 with total page 351 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book The Role for Deposit Insurance Funds in Dealing with Failing Banks in the European Union written by Mr. Atilla Arda and published by International Monetary Fund. This book was released on 2022-01-07 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book Options for Reforming Deposit Protection Schemes in the EU written by Maria Gerhardt and published by . This book was released on 2011 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book European Union written by International Monetary Fund. Monetary and Capital Markets Department and published by International Monetary Fund. This book was released on 2013-03-15 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book Towards a European Deposit Guarantee Scheme written by Tomasz Knepka and published by . This book was released on 2017 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book The Role of Deposit Guarantee Schemes as a Financial Safety Net in the European Union written by Jakub Kerlin and published by Springer. This book was released on 2017-08-03 with total page 361 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book The Eurosystem s Stance on the Commission s Consultation Document on the Review of Directive 94 19 EC on Deposit guarantee Schemes written by and published by . This book was released on 2009 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt: This document provides the Eurosystem's stance on the Consultation Document by the European Commission on the Review of Directive 94/19/EC on Deposit-Guarantee Schemes (DGS). The Eurosystem's stance is based on two main principles: first, DGS are important elements of the safety net and therefore their role in promoting financial stability and enhancing public confidence in the financial system should be strengthened. Second, DGS play a role in achieving a single market for financial services, including the promotion of a level playing field for internationally active banks and banking groups. This latter principle calls for a higher level of harmonisation among DGS in the EU, both from an institutional and operational perspective.
Download or read book Belgium written by International Monetary Fund. Monetary and Capital Markets Department and published by International Monetary Fund. This book was released on 2023-12-08 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Belgium FSAP deep dived into the arrangements related to the financial safety net and crisis management. Belgium made progress since the 2018 FSAP2 in the preparation of resolution plans and minimum requirement for own funds and eligible liabilities (MREL) targets. The authorities should now focus on strengthening the crisis management framework, ensure the operational readiness of resolution plans and enhancing the Deposit Insurance System (DIS). The Belgium FSAP has reviewed the national arrangements and, as a result, all the recommendations are addressed to the national authorities. This technical note also refers to Significant Institutions (SIs) when relevant and includes a factual description of the allocation of responsibilities between the Belgian authorities, the European Central Bank (ECB) and the Single Resolution Board (SRB) with regards to the functioning of the financial safety net.
Download or read book Cross border Coordination of Prudential Supervision and Deposit Guarantees written by Daniel C. L. Hardy and published by . This book was released on 2008 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: The scramble to expand deposit guarantees in Europe in response to recent financial turmoil confirms that the on-going integration of European financial markets requires closer coordination of prudential policies and financial safety nets. We study the optimal design of prudential supervision and deposit guarantee regulations in a multi-country, integrated banking market such as the European Union, where policy-makers have either similar or asymmetric preferences regarding profitability and stability of the banking sector. The paper concludes with recommendations on policy priorities in this area.
Download or read book A Banking Union for the Euro Area written by Rishi Goyal and published by International Monetary Fund. This book was released on 2013-02-12 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: The SDN elaborates the case for, and the design of, a banking union for the euro area. It discusses the benefits and costs of a banking union, presents a steady state view of the banking union, elaborates difficult transition issues, and briefly discusses broader EU issues. As such, it assesses current plans and provides advice. It is accompanied by three background technical notes that analyze in depth the various elements of the banking union: a single supervisory framework; a single resolution and common safety net; and urgent issues related to repair of weak banks in Europe.
Download or read book The Role of Deposit Guarantee Schemes DGSS in Resolution Financing written by Christos Gortsos and published by . This book was released on 2019 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book European Financial Regulation written by Veerle Colaert and published by Bloomsbury Publishing. This book was released on 2019-12-26 with total page 384 pages. Available in PDF, EPUB and Kindle. Book excerpt: Mirroring the long-established structure of the financial industry, EU financial regulation as we know it today approaches banking, insurance and investment services separately and often divergently. In recent decades however, the clear separation between financial sectors has gradually evaporated, as business lines have converged across sectors and FinTech solutions have emerged which do not fit traditional sector boundaries. As the contours of the traditional tripartition in the financial industry have faded, the diverging regulatory and supervisory treatment of these sectors has become increasingly at odds with economic reality. This book brings together insights developed by distinguished researchers and industry professionals in a series of articles analysing the main areas of EU financial regulation from a cross-sectoral perspective. For each specific research theme – including prudential regulation, corporate governance and conduct of business rules – the similarities, as well as gaps, overlaps and unjustifiable differences between banking, securities and insurance regulation, are clearly presented and discussed. This innovative research approach is aimed at informing lawmakers and policymakers on potential improvements to EU financial regulation whilst also supporting legal and compliance professionals applying the current framework or looking to streamline compliance processes.
Download or read book Managing the Sovereign Bank Nexus written by Mr.Giovanni Dell'Ariccia and published by International Monetary Fund. This book was released on 2018-09-07 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reviews empirical and theoretical work on the links between banks and their governments (the bank-sovereign nexus). How significant is this nexus? What do we know about it? To what extent is it a source of concern? What is the role of policy intervention? The paper concludes with a review of recent policy proposals.
Download or read book Design Structure and Implementation of a Modern Deposit Insurance Scheme written by Beat Bernet and published by . This book was released on 2009 with total page 86 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Iceland written by International Monetary Fund. Monetary and Capital Markets Department and published by International Monetary Fund. This book was released on 2023-07-28 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Note assesses and makes recommendations regarding the different elements of the financial safety net in Iceland. The scope of the assessment includes the institutional arrangements for recovery, resolution, and crisis management; the oversight of banks’ recovery plans; the legal regime for bank bankruptcy and resolution; resolution planning by the authorities; the funding mechanism to support resolution; the deposit guarantee scheme; and the government authorities’ collective preparedness to deal with financial crises.
Download or read book Deposit Insurance Around the World written by Aslı Demirgüç-Kunt and published by MIT Press. This book was released on 2008 with total page 415 pages. Available in PDF, EPUB and Kindle. Book excerpt: Explicit deposit insurance (DI) is widely held to be a crucial element of modern financial safety nets. This book draws on an original cross-country dataset on DI systems and design features to examine the impact of DI on banking behavior and assess the policy complications that emerge in developing countries.
Download or read book Bank Recovery and Resolution written by Sven Schelo and published by Kluwer Law International B.V.. This book was released on 2020-10-14 with total page 201 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
