scholarly journals Recent developments in deposit insurance from EU perspective

2015 ◽  
Vol 12 (4) ◽  
pp. 867-870
Author(s):  
Łukasz Szewczyk
Keyword(s):  
Financial Crisis ◽  
Financial Stability ◽  
Deposit Insurance ◽  
Crucial Issue ◽  
Funding Model ◽  
Strong Emphasis ◽  
Recent Developments ◽  
European Banking ◽  
Deposit Guarantee Schemes ◽  
The Eu

The aim of this article is to present recent developments on deposit guarantee scheme within the EU. These schemes has changed significantly during the financial crisis, which led to adoption of a directive on deposit guarantee schemes in 2014. A strong emphasis will be put on deposit guarantee schemes financing issues. This is a crucial issue, especially at the time when European Banking Authority is working on methods for calculating contributions to deposit guarantee schemes and its funding model. This model may be an important step in mitigating risks generated by banks and may contribute to financial stability in EU.

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).

scholarly journals European Deposit Insurance Scheme(s) – Consequences for the EU’s Financial Stability

2021 ◽  
Vol 24 (4) ◽  
pp. 123-136
Author(s):  
Klaudia Zielińska-Lont
Keyword(s):  
Financial Stability ◽  
Deposit Insurance ◽  
Banking Union ◽  
The European Union ◽  
Target Level ◽  
Insurance Scheme ◽  
National Implementation ◽  
Deposit Guarantee Schemes ◽  
Limited Scope ◽  
The Eu

The aim of this paper is to evaluate the potential consequences that the shortcomings in harmonising the national deposit guarantee schemes may have on the financial stability of the European Union. The relevance of this subject is underlined both by the European Commission’s intention to revive the European Deposit Insurance Scheme project in 2021 and the recent signals from Germany that they are willing to support the initiative. The paper presents a review of the discussions on establishing a European Deposit Insurance Scheme, the reasons for the project’s failure and the consensus solution that took the form of the Deposit Guarantee Scheme Directive (DGSD). The limited scope of deposit guarantee scheme harmonisation under this directive is discussed in the context of the related EBA opinions pointing to different areas of potential improvements. Differences in national implementation are also reviewed in terms of their potential impact on financial stability. Apart from a careful literature review, statistical analysis of the available financial information characterizing the largest national deposit schemes of the euro is performed to quantify their progress towards the target level of the available financial means. The results prove that most national schemes are still far from reaching the 0.8% target level of readily available funds and that potentially desirable amendments to the DGSD may drag them even further away from reaching that target by 2024. The author concludes that from the perspective of financial stability, the EU should focus on establishing a single scheme at an international level that would complete the project of establishing a banking union. The results contribute to the ongoing discussion on the need to further integrate the national deposit guarantee schemes inside the EU.

How Has the EU Protected Depositors in the Financial Crisis?

2014 ◽  
Vol 16 ◽  
pp. 289-312
Author(s):  
Niall J Lenihan
Keyword(s):  
Financial Crisis ◽  
Banking System ◽  
The Us ◽  
The Impact ◽  
Deposit Guarantee Schemes ◽  
The Eu

AbstractThis chapter addresses the question of how the EU has protected depositors in the financial crisis. The chapter will discuss (1) the impact in Europe of the US system for the protection of depositors, (2) the important changes made to the EU Deposit Guarantee Schemes Directive, first in 2009 in response to the 2007 deposit run on Northern Rock, and then again in 2014 in response to the financial crisis, (3) the decision of the EFTA Court regarding the scope of Iceland’s obligations under the EU Deposit Guarantee Schemes Directive, following the collapse of the Icelandic banking system in 2008, and (4) the introduction of a powerful depositor preference rule throughout the EU, in response to the resolution of the Cypriot banking system in 2013. This chapter argues that the EU has responded to the impact of the financial crisis on bank depositors by enhancing the legal protections available to depositors.

Part II The Financial Crisis of 2007–2011, 9 The Initial Response to the Financial Crisis by the EU and Elsewhere

2018 ◽  
Author(s):  
Mccormick Roger ◽  
Stears Chris
Keyword(s):  
Financial Crisis ◽  
European Commission ◽  
Financial Stability ◽  
Financial Regulation ◽  
Initial Response ◽  
Banking Supervision ◽  
Basel Committee ◽  
Regulation And Supervision ◽  
European Financial Regulation ◽  
The Eu

This chapter discusses the various laws, regulations, and comparable measures that were passed or proposed in response to the financial crisis in the EU and elsewhere. It covers the responses of the de Larosière Report, G20, the Basel Committee on Banking Supervision, and the Financial Stability Board. The de Larosière Report, for instance, was commissioned by the President of the European Commission in October 2008 and delivered on 25 February 2009. The report sought ‘to give advice on the future of European financial regulation and supervision’ and has formed the basis of many of the responses to the financial crisis at EU level. The G20 issued a comprehensive communiqué on the crisis at the London ‘Summit’ of 2 April 2009, covering a number of macro-economic and other ‘architectural’ issues.

scholarly journals Multilevel regulatory governance: Establishing bank-regulator relationships at the European Banking Authority

2019 ◽  
Vol 22 (1) ◽  
pp. 113-134 ◽  
Author(s):  
David Coen ◽  
John-Paul Salter
Keyword(s):  
Financial Crisis ◽  
European Central Bank ◽  
Regulatory Regime ◽  
Multilevel System ◽  
Regulatory Governance ◽  
European Central ◽  
European Banking Authority ◽  
European Banking ◽  
New System ◽  
The Eu

AbstractFollowing the 2007–9 financial crisis, the EU strengthened its institutional apparatus for bank regulation, creating a trio of sectoral bodies, including the European Banking Authority (EBA). Various aspects of this new system have been studied, but to date, little is known about how banks engage with their new supranational regulator. We argue that such engagement fosters an interdependence between banks and regulators, thus contributing to the efficiency and robustness of the overall regulatory regime; but also that it is contingent on the regulator exhibiting the qualities of credibility, legitimacy, and transparency. These qualities are grounded in the domestic regulatory governance literature, but we suggest that they are rendered problematic by the complexities of the EU's multilevel system and, in particular, the overlap in competences between the EBA and the European Central Bank. We examine the EBA in the light of these criteria and find that banks’ engagement remains pitched towards established national regulators and the EU's legislative arena. This poses concerns for the efficacy of agency governance in the EU's regulatory regime for banking.

scholarly journals Financial and Banking Regulation and Supervision within the EU

2013 ◽  
Vol 3 (2) ◽  
pp. 17-37
Author(s):  
Constanze Lehleiter
Keyword(s):  
Financial Stability ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Banking Regulation ◽  
Capital Requirements ◽  
Green Paper ◽  
Shadow Banking ◽  
The European Union ◽  
European Banking ◽  
The Eu

AbstractThe European Union (EU) has faced not only the international financial crisis, but also the European banking and the sovereign debt crisis. A lack of efficient regulations and supervision were a serious cause of recent developments. As a reaction, the EU finally implemented a framework covering both micro- and macro-prudential policies. Measures such as the new capital requirements, the deposit guarantee schemes, the green paper on shadow banking and, most importantly, the new approach for a macro-prudential supervision are headed towards crisis prevention. However, the challenge is to define regulations enhancing financial stability, which, at the same time, do not prevent institutions from generating reasonable financial risks and do not reduce growth. In that regard, the presented measures still have deficits which have to be faced. Furthermore, coordination between various authorities and the European Commission remains another challenge.

The opportunity for euro-area reform is closing

2019 ◽  
Keyword(s):  
Euro Area ◽  
Deposit Insurance ◽  
Insurance Coverage ◽  
Burden Sharing ◽  
Banking Union ◽  
Governance Reform ◽  
Content Type ◽  
European Banking Union ◽  
European Banking ◽  
The Eu

Subject Euro-area governance. Significance In the EU, macroeconomic governance reform is focusing around the creation of a euro-area budget and a European Deposit Insurance Scheme (EDIS) -- the final pillar for the completion of the European Banking Union (EBU) which would provide stronger insurance coverage for member states. However, northern countries are reluctant to pay for crisis-prone ones in the south, so compromise on detail could take years while the initiatives will have limited scope in responding to crises. Impacts The ECB’s Single Supervisory Mechanism will continue to focus on ‘risk reduction’ measures, including the disposal of non-performing loans. The EU is unlikely to give Italian budget concessions perceived as acceptable by Rome, possibly hardening the position of Italy’s populists. If Manfred Weber’s candidacy to become European Commission president fails, Berlin will likely insist that it gets the ECB president post. The rise of migration flows in the Mediterranean and the lack of EU resolution on burden-sharing will worsen north-south relations.

An Investigation of the Maastricht Fiscal Criteria and the European Union's Harmonization

2019 ◽  
pp. 160-178
Author(s):  
Sami Buhur
Keyword(s):  
Financial Crisis ◽  
Public Debt ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Maastricht Treaty ◽  
Budget Deficits ◽  
Legal Regulations ◽  
Harmonization Process ◽  
Legal Sanctions ◽  
The Eu

The Maastricht Treaty brought many innovations in the process of harmonization of the EU. This treaty, which was realized in 1993, aims to harmonize the economic, financial, legal, and political aspects of the EU members. Two basic financial criteria were identified in the financial stability and harmonization process. The first is the ratio of member countries' budget deficits to GDP. The second is the ratio of the member country's public debt to the GDP. In this chapter, it will be revealed how EU member countries are adapting to financial criteria. For this purpose, reports and statistics published by international organizations such as OECD and EU will be examined. It will be seen in many of the EU member countries can not adapt to these criteria. Especially after the 2008 Global Financial Crisis, there were difficulties in adapting to these criteria. The EU Council put into effect several legal regulations in the harmonization process. Although many legal sanctions were put into effect for this purpose, success in complying with the financial criteria were not achieved.

scholarly journals Evaluating the changes in the European Banking Regulation – MiFID and its possible effects on the Global Economy: A Theoretical Study

2019 ◽  
Vol 3 (4) ◽  
pp. 24-31 ◽  
Author(s):  
S.T. Islam ◽  
M.Y.H. Khan
Keyword(s):  
Financial Crisis ◽  
Financial Management ◽  
Financial Stability ◽  
Global Economy ◽  
Banking System ◽  
Banking Regulation ◽  
Regulatory Framework ◽  
Financial Investment ◽  
European Banking ◽  
The Impact

Banking regulation plays an important role in the process of ensuring financial stability, the national economy, equitable distribution of wealth and the most efficient use of financial resources. As a key regulatory tool, Banking Regulation monitors and monitors financial transactions to improve their profitability and efficiency. The author points out that the main areas of banking regulation and supervision are to control the processes of formation, operation and liquidation of commercial banks. The article focuses on the fact that the 2008 financial crisis has become a motivating driver for reforms in the banking system of Europe and America. The main purpose of the article is to assess the impact of changes in the European Banking System, in particular in the context of the study of the features of the Financial Markets Directive, on the functioning of the global economy. This paper provides a critical review of the literature from the point of view of analyzing the specificity of MiFID II in the context of its impact on the economic aspects of the country’s development. The implementation of the Directive requires significant financial investment, but these costs will pay off given the fact that MiFID II is well-designed and aimed at providing more secure protection and greater customer base stability. However, the author points out the underdevelopment and inconsistency of the regulatory framework, which is of greater concern than the cost of implementing MiFID II. Thus, the idea of the likelihood of financial and economic problems in the process of influence of banking regulation on the development of the global economy is substantiated. Notwithstanding these shortcomings, the regulatory framework for the formulation and implementation of the Directive is a significant contribution to the regulation of the financial sector. The results of the study represent scientific and practical value for academics, politicians, banking financial management of economic entities, stakeholders to better prepare and evaluate future changes as a result of reforming banking regulation. Keywords: Directives, Economic growth, Financial crisis, MiFID, Regulation.

3. Prudential Regulation II: Structural Reform, Deposit Insurance, Corporate Governance

2018 ◽  
Author(s):  
Ross Cranston ◽  
Emilios Avgouleas ◽  
Kristin van Zweiten ◽  
Theodor van Sante ◽  
Christoper Hare
Keyword(s):  
Corporate Governance ◽  
Financial Stability ◽  
Deposit Insurance ◽  
Legal Framework ◽  
Structural Reform ◽  
Reform Legislation ◽  
Clearing And Settlement ◽  
The Usa ◽  
The Uk ◽  
The Eu

This chapter discusses bank structural reform. Most structural reform initiatives that have been undertaken since 2008 were aimed at reversing the effects of the repeal of the Glass–Steagall Act in the late 1990s and of the EU legislation that promoted universal banking. The chapter first considers the financial stability concerns and the mechanics of contemporary structural reform legislation in the USA, the UK, and the EU, and the actual legal framework underpinning these reforms. It then covers the regulation of bank involvement in derivatives markets. Today, derivatives regulation is a clear part of macroprudential regulation to the extent that centralized clearing and settlement and increased transparency battle opacity and interconnectedness and limit systemic risk. The remainder of the chapter covers deposit insurance, bank corporate governance, risk control, and executive remuneration.

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