Deposit insurance
EBA reveals guidelines for first stress tests on deposit guarantee schemes
European deposit guarantee schemes must carry out stress tests including checks on member banks’ customer data, response to stressed conditions and cross-border co-operation
Now banks face bail-in, should we rethink deposit insurance?
David Mayes argues deposit insurance schemes forged during crisis may impose unnecessary costs in more normal times
National Bank of Belgium sees deposit guarantee scheme as ‘missing component’
Central bank says a joint scheme is the ‘missing component’ of banking union, but argues risk-sharing must be accompanied by better risk control
EBA publishes guidelines for co-operation agreements between deposit guarantee schemes
European Banking Authority lays out guidelines for agreements between EU deposit guarantee schemes; clear principles should lessen conflict and make mediation easier, authority says
Buch enters reservation on common deposit guarantees
Bundesbank deputy says safeguards must be put in place before a eurozone deposit guarantee scheme can be established, even as Draghi welcomes progress on the scheme
Sovereign money a ‘risky experiment’ says SNB’s Jordan
Thomas Jordan says sovereign money initiative looking to strip banks of ability to create money would ‘entail a radical overhaul of Switzerland’s financial system’; SNB holds rates
New Dutch deposit guarantee scheme should ‘disincentivise risk-taking’ by banks
The Netherlands Bank has introduced a new deposit guarantee scheme; scope is wider than old scheme and risk-based, ex ante funding structure aims to dis-incentivise risk-taking by banks
EC plans full eurozone deposit insurance by 2024
Proposals outline gradual introduction of common deposit insurance in the eurozone between 2017 and 2024; size of fund equivalent to 0.8% of covered deposits, estimated at €43bn
South African deputy looks to fill gaps in resolution setup
Francois Groepe highlights main elements of proposals for a new resolution framework in South Africa; particular emphasis on creating a deposit guarantee scheme
Kazakh central bank moves to stabilise banking sector
Central bank launches plan to compensate depositors hit by collapse in value of tenge, as banks reliant on external funding run into problems
China’s path to financial deepening
Despite China’s quick progress in the sphere of manufactured goods, the country’s financial system has been a few steps behind, but that is steadily changing
PBoC to accelerate reform process in 2015
Chinese central bank signals more financial reforms and a faster opening of financial markets in 2015; focus on ‘prudent’ monetary policy but more stimulus a possibility
EBA finds Bulgarian National Bank ‘in breach’ of EU law
The European Banking Authority issues a recommendation calling for the Bulgarian authorities to allow depositors access to the funds held by failed banks
ECB prize winners size up shadow banking
Working paper published by the ECB considers how regulatory arbitrage and the shadow banking sector can undermine commercial bank safety nets
Bulgaria tells Brussels it can't guarantee failed bank deposits
Enforcing bank contributions to a deposit guarantee fund would destabilise the country's banking sector, Bulgarian governor and finance minister tell European Commission
Constâncio calls for centralised deposit insurance scheme
European Central Bank’s Vítor Constâncio welcomes legislators deal on deposit guarantees but insists they are ‘only a little part’ of what is necessary
Basel III requirements could clash with new bail-in rules, warns IMF
Increased pressure on banks to rely more heavily on collateralised debt could combine with ‘depositor preference' rules to raise funding costs at a time when credit conditions remain tight