Within the legal reforms of the banking sector to strengthening the financial sector stability, amendments on Law on central bank, Banking law, and
Deposit insurance law have been passed by the State Great Khural (Parliament), and the amendments on Money Laundering and Terrorist Financing prevention law is expected shortly.
In this context, Directors encouraged prompt passage of the new
deposit insurance law.
Important legal reforms including the Banking law and Bank of Mongolia law have been passed, a new
deposit insurance law is expected shortly, and improvements to the regulatory and supervisory framework are under way.
The amendments to the
deposit insurance law will ultimately redound to the benefit of the depositing public.
Global Banking News-November 19, 2014--Germany gets new
deposit insurance lawThe bill also modified the
deposit insurance law to allow the Deposit Insurance Corporation of Japan to invest public funds in securities and insurance companies to help prevent financial crises.
The bill revising the
deposit insurance law creates a fund to support the restructuring of savings banks, which have been under pressure due to their exposure to the rocky real estate sector.
As the bank is part of Russia's deposit insurance system, its depositors will be recouped under the
deposit insurance law.
Currently, an injection of public funds into a single bank is allowed only when there are fears of a financial system crisis, according to Section 102 of the
Deposit Insurance Law.
An FDIC spokesman said, "The bank should have let these people know (when they took out the mortgage) that this was subject to the
deposit insurance law.
The adoption by the BiH parliament of the new Law on Deposit Insurance - Entity level banking and banking agency laws have already been passed, and the absence of a new
deposit insurance law delays the modernization of the country's banking sector legislation.
