Entity-level banking and banking agency laws have already been passed, and delay in passage of the new
deposit insurance law affects the modernization of the country's banking sector legislation,' Mr.
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.
Fitch believes Japan's
Deposit Insurance Law (DIL) provides the legislative framework to enable the resolution authority to bail-in senior debt (convert to equity or write-off the notes) and Specified Measure 2 (SM2) set forth in Article 126-2 of the DIL to be the mechanism by which an "orderly resolution" can be achieved.
Germany has introduced a new
deposit insurance law that is expected to strengthen its bank deposit insurance system.
The 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. There's nothing we can do about it.
