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The Role of Deposit Guarantee Schemes (DGSS) in Resolution Financing

Authors: Christos Gortsos;

The Role of Deposit Guarantee Schemes (DGSS) in Resolution Financing

Abstract

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.

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Powered by OpenAIRE graph
Found an issue? Give us feedback
selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
7
Top 10%
Average
Average
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