Uninsured Depositor

(redirected from Uninsured Depositors)

Uninsured Depositor

A municipal bond for which a bond insurance company does not guarantee payment. An uninsured bond is only protected by the revenues of the issuing municipality, and does not have an outside guarantor. For that reason, an uninsured bond carries more risk, and therefore usually carries a higher coupon rate than an insured bond.
References in periodicals archive ?
Household and corporate balance sheets have been damaged in the crisis, including through the bail-in of uninsured depositors.
Of course, my impression up to now was that Mr Mavrides was strongly against any form of haircut and it will be interesting if he could refer us to a public intervention he might have made in 2013 (or in 2014) supporting the horizontal haircut on uninsured depositors.
As a consequence, on March 25, 2013, Cyprus agreed to a revised bailout deal with the Troika that only impacted bondholders or uninsured depositors in Laiki Bank and Bank of Cyprus -- who were overwhelmingly from countries other than Cyprus.
0 million, will automatically be credited to the funds held in trust for the closed banks concerned and will be used to settle claims of creditors and uninsured depositors.
It is unclear, however, how the authorities will be able to protect Corpbankas uninsured depositors with the government of Prime Minister Plamen Oresharski having now resigned and Parliament awaiting to be dissolved to open the way for early elections.
Since the mid-1980s, a number of studies have examined whether uninsured depositors respond to bank risks by withdrawing their deposits and/or requiring higher interest rates.
He added, "The FDIC will continue to pursue litigation where necessary in order to recover as much as possible for FDIC receiverships, money that is ultimately returned to the Deposit Insurance Fund, uninsured depositors and creditors of failed banks.
The new bailout conditions do not go as far as they did in Cyprus, though, where senior bondholders and uninsured depositors took a hit.
The Dutch finance minister said if banks needed restructuring and were unable, then euro zone officials would turn to shareholders, bondholders and uninsured depositors to contribute to a bank rescue.
On March 25, after the decision had been taken to wind up the country's second-largest bank, and to impose large losses on uninsured depositors in the process, Eurogroup President Jeroen Dijsselbloem, the Dutch finance minister, declared that a healthy financial sector requires that "where you take on the risks, you must deal with them".
Cyprus will shut down its second largest bank and inflict heavy losses on uninsured depositors in return for a 10bn-Euro deal to keep the country in the Eurozone.
A government spokesman said the losses on uninsured depositors would be "under or around 30%".