Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

EU Deposit Insurance, a Bank Crisis in Italy and Greece, and the Coming Ban on Cash

Courtesy of Mish

Last week we investigated nonperforming EU loans and an EU proposal to freeze accounts if a run on a bank starts.

Today let’s investigate the EU’s deposit insurance scheme with the likely result being a ban on cash.

On July 19, with little media publicity, the EU Single Resolution Board issued a statement with this exact title: Press Release – Banking Union – Single Resolution Board collects €6.6 billion in annual contributions to the Single Resolution Fund, now reaching €17 billion in total.

For starters, there is no “banking union” to speak of. That aside, let’s explore the deposit insurance goal and where things are now.

As of 30 June 2017, the Single Resolution Board (SRB) had collected €6.6 billion from 3,512 institutions in annual contributions to the Single Resolution Fund (SRF). In total, the SRF now holds an amount of €17.4 billion.

The SRF pools contributions which are raised on an annual basis at national level from credit institutions and certain investment firms within the 19 participating Member States. These contributions are calculated on the basis of the methodology set out in the Commission Delegated Regulation (EU) 2015/63 and Council Implementing Regulation (EU) 2015/81 and are collected via the National Resolution Authorities (NRAs).

The SRF is being built-up over a period of eight years (2016-2023). The target size is intended to be at least 1% of covered deposits by end 2023. 3,512 institutions banks and investment firms have to contribute to the Fund.

The Goal

That’s the entire press release, as written. The goal is to create an emergency “safeguard” that can only be used as a “last resort”.

The target goal is “at least 1% of assets” and it will take until 2023 to collect this reserve.

SRF vs NPLs

At hand right now the SRF has €17.4 billion in the emergency safeguard.

Continue reading here…


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!