Organizational Design and Positioning of the Deposit Insurance Function in the Financial System Safety Net

2007 ◽  
pp. 92-116
Author(s):  
Lawrence Kryzanowski
Keyword(s):  
Deposit Insurance ◽  
Organizational Design ◽  
Financial System ◽  
Safety Net ◽  
System Safety

Improving Japan's Financial System, with Emphasis on Reforming the Postal Savings Business

2003 ◽  
Vol 2 (1) ◽  
pp. 172-183 ◽  
Author(s):  
Yuri Okina
Keyword(s):  
Deposit Insurance ◽  
Banking Sector ◽  
Financial System ◽  
Safety Net ◽  
Real Sector ◽  
Deposit Insurance System ◽  
Wide Range ◽  
The Government ◽  
Run Up ◽  
Adequate Supervision

The crisis facing Japan's banking sector has been attributed to a wide range of factors: (1) the run-up and collapse of the bubble; (2) a lack of adequate supervision of financial institutions by the government; (3) the stagnation of the economy, because the Japanese growth model is no longer relevant; and (4) bad management of the banks. It is important to reform corporate governance in the real sector, not merely in the financial sector. It should also be recognized that Japan's financial system should reduce the size of the safety net provided by the government not only through the deposit insurance system, but also through the enormous postal savings business.

11 The Role of Deposit Insurance Post Implementation of the EU Recovery, Resolution, and Deposit Guarantee Directives

2016 ◽  
Author(s):  
LaBrosse John Raymond ◽  
Walker David K
Keyword(s):  
Financial Stability ◽  
Deposit Insurance ◽  
International Association ◽  
Safety Net ◽  
System Safety ◽  
European Directive ◽  
Eu Directive ◽  
Deposit Guarantee Schemes ◽  
The Eu

This chapter explores some key provisions of the European Bank Recovery and Resolution Directive (BRRD) and how it relates to deposit protection provided by the European Directive on Deposit Guarantee Schemes (DGS). It explains the structure and roles of the agencies that comprise a financial system safety net and the pertinent features of the arrangements that have been widely adopted. In particular, the chapter considers the provisions of the Directive respecting which agency within the safety net should have responsibility for bank resolutions, the ‘bail-in’ provisions embodied within the Directive, and significant issues that have yet to be addressed fully. In doing so it examines how the EU Directive lines up with work undertaken by the Financial Stability Board (FSB) and the International Association of Deposit Insurers (IADI).

A Framework for Regional Banking Regulation in ASEAN

2020 ◽  
Vol 19 (3) ◽  
pp. 111-125
Author(s):  
Peter J. Morgan
Keyword(s):  
Capital Flows ◽  
Deposit Insurance ◽  
Financial Regulation ◽  
Financial Integration ◽  
Banking Regulation ◽  
Safety Net ◽  
Regional Level ◽  
Cross Border ◽  
Banking Institutions ◽  
Financial Safety Net

This paper argues that there is a role for regional-level institutions of banking regulation in the ASEAN region. This is particularly important in an environment of increasing financial integration and harmonization, including exposures to shocks from volatile capital flows and cross-border banking institutions. The paper examines four aspects of financial regulation: microprudential regulation, macroprudential regulation, resolution capacity and deposit insurance, and a financial safety net. The paper argues that EU regional banking regulation provides a useful reference point, but the lower degree of credit market openness in ASEAN implies that a more nuanced approach can be adopted, and makes specific recommendations.

Conclusion

2020 ◽  
pp. 335-356
Author(s):  
Arthur E. Wilmarth Jr.
Keyword(s):  
Conflicts Of Interest ◽  
Banking System ◽  
Financial System ◽  
Safety Net ◽  
Shadow Banking ◽  
Financial Conglomerates ◽  
Shadow Banks ◽  
Regulatory Systems ◽  
Shadow Banking System ◽  
Investment Advisers

A new Glass-Steagall Act would break up universal banks and end the conflicts of interest that prevent universal banks from acting as objective lenders and impartial investment advisers. It would produce a more stable and resilient financial system by reestablishing structural buffers to prevent contagion between the banking system and other financial sectors. It would improve market discipline by preventing banks from transferring their safety net subsidies to affiliates engaged in capital markets activities. It would shrink the shadow banking system by prohibiting nonbanks from issuing short-term financial claims that function as deposit substitutes. It would remove the dangerous influence that large financial conglomerates exercise over our political and regulatory systems. It would end the current situation in which our financial system and our economy are held hostage to the survival of universal banks and large shadow banks. It would restore our banking system and financial markets to their proper roles as servants—not masters—of nonfinancial business firms and consumers.

Indonesia's new financial crisis law carries risks

2016 ◽  
Keyword(s):  
Financial Crisis ◽  
Crisis Management ◽  
Financial Crises ◽  
Deposit Insurance ◽  
Financial System ◽  
Legal Basis ◽  
Content Type ◽  
Regulatory Authorities ◽  
Crisis Prevention ◽  
First Time

Subject The new financial crisis management law. Significance On March 17, parliament approved the long-awaited 'Financial System Crisis Prevention and Mitigation' bill. For the first time, Indonesia has a law on financial crisis management that will provide the legal basis for regulatory authorities to respond better to future financial crises. Impacts Government preparedness to manage a financial crisis will rise, albeit gradually. Political stalemate during a crisis, especially in parliament, would prevent effective and timely action by the president. The Deposit Insurance Corporation has limited capitalisation and may not be strong enough to manage more than two large troubled banks.

scholarly journals IMF COVID-19 Response—A New Short-Term Liquidity Line to Enhance The Adequacy Of The Global Financial Safety Net

Policy Papers ◽  
2020 ◽  
Vol 20 (25) ◽  
Author(s):  
Keyword(s):  
Developing Countries ◽  
Emerging Market ◽  
Financial System ◽  
Safety Net ◽  
Short Term ◽  
Key Features ◽  
Global Uncertainty ◽  
Global Financial System ◽  
New Facility ◽  
Financial Safety Net

The COVID-19 pandemic has created severe disruption in the global financial system, with many emerging market and developing countries (EMDCs) facing liquidity shortages. In the context of intensified demand for liquidity and heightened global uncertainty, staff has revisited the 2017 proposal for a new facility to provide liquidity support to the Fund’s membership. This paper proposes the establishment of a new Short-term Liquidity Line (SLL) as a special facility in the General Resources Account (GRA), based on the key features of the 2017 blueprint.

scholarly journals The essence of the Bank Guarantee Fund’s activity and related dilemmas in the context of banking system stability

2018 ◽  
Vol 21 (5) ◽  
pp. 121-130
Author(s):  
Iwona Dorota Czechowska
Keyword(s):  
Deposit Insurance ◽  
Banking Sector ◽  
Banking System ◽  
Safety Net ◽  
Economic Transformation ◽  
System Stability ◽  
Main Task ◽  
Difficult Situation ◽  
Guarantee System ◽  
The Usa

The deposit guarantee system in Poland was devised at the time of the economic transformation. Its creation resulted from a difficult situation in the banking sector, and so it was meant to be an antidote to clients’ problems associated with the insolvency of collapsing banks and with adjusting to European community law. The aim of this work is to present the Bank Guarantee Fund—an institution that is part of the financial safety net, whose main task is to protect the interest of depositors and to ensure the banking system’s stability. The paper looks at some aspects of the growing interest in bank deposit insurance schemes and lively discussions on the subject during a crisis in banking markets. In response to the crisis that started in the subprime lending market in the USA and spread to other segments of the financial markets as well as to other countries, the ECOFIN made a decision to increase the existing guarantee limits for individual persons and to speed up the payout of guaranteed funds. The above changes were aimed at strengthening the security of clients and increasing confidence in the banking sector.

Formal and Informal Financial Channels in China

2013 ◽  
Vol 05 (03) ◽  
pp. 38-48
Author(s):  
Lihong WANG
Keyword(s):  
Financial Market ◽  
Significant Role ◽  
Deposit Insurance ◽  
Financial System ◽  
Legal Protection ◽  
Financial Risks ◽  
State Sector ◽  
Insurance System ◽  
Financing Channels ◽  
Deposit Insurance System

China has achieved remarkable growth despite weak legal protection of investors and an underdeveloped financial system. Other financing channels have played a significant role in the growth of the non-state sector. However, informal financial organisations do not have mechanisms that guard against financial risks and lack a reserve and deposit insurance system. Recent measures seem inadequate in accelerating the development of China's financial market. More and bolder reforms are needed.

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