Uninsured Depositor

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 ?
* In the examples just provided, if an uninsured depositor or other short-term creditor of an operating subsidiary knew--really knew-that the holding company would have to lose $340-$350 billion before the short-term creditor could sustain any loss, shouldn't that substantially eliminate the incentive to run except in cataclysmic circumstances?
One bond trader said: "If you're an uninsured depositor at a bank in Spain you wouldn't be too happy about this."
Immediate and full payment of insured and uninsured depositor claims has both advantages and disadvantages.
The Board believes, however, that an explicit policy that requires imposition of uninsured depositor loss--no matter how small--is likely to increase the risk of depositor runs and to exacerbate the depositor response to rumors.
If, in fact, proposals that rely on uninsured depositor discipline, risk-based premiums, and structural changes in the delivery of bank services raise significant difficulties, reform should then look to other ways to curb banks' risk appetites, and to limit the likelihood that the deposit insurance fund, and possibly the taxpayer, will be called on to protect depositors.
Proceeds from the sale of closed banks' properties are added to the pool of funds of these banks for distribution to creditors and uninsured depositors in accordance with the rules on concurrence and preference of credits.
PDIC continues to hold various asset disposal initiatives such as biddings, auctions and negotiated sale to beef up the pool of liquid assets of these banks for distribution to uninsured depositors and other creditors in accordance with the rules on concurrence and preference of credits.
As an example, if we take the case of BoC, the bank recapitalized in 2013 by the money from the uninsured depositors and then again in 2014 (with extra e1/41bn of capital from foreign investors) and by now even the new shareholders suffer a 70% reduction of their investment (let alone the uninsured depositors that were diluted back in 2014)!
Azerbaijan Deposit Insurance Fund (ADIF) will start payment of compensations to the last remaining uninsured depositors of Azerbaijan's GanjaBank OJSC on April 15,Trendreports April 8 with reference to the ADIF.
Proceeds from the sale of closed banks properties are added to the pool of liquid assets of these banks for distribution to creditors and uninsured depositors in accordance with the rules on concurrence and preference of credits.
In the end, the burden of the bail-in was shouldered by the uninsured depositors of Laiki that lost all deposits over e1/4100,000 and those of Bank of Cyprus that lost almost half of them.
Uninsured depositors will thus improve their chances of recovery from the assets of closed banks, since their claims will be settled ahead of other ordinary creditors.