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 ?
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.
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.
Similarly, in general, the FDIC's resolutions of troubled and failing larger institutions during the Quiet Period--much smaller in number but much more consequential in size--were also executed in an orderly manner where both insured and uninsured depositors were shielded from loss.
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.
material losses for Corpbank's uninsured depositors following the
aThe downgrade was prompted by the increased risk of losses to depositors given the uncertainty with regards to when they will regain access to their deposits and the authorities' plan to fully protect uninsured depositors; and the results of an independent audit commissioned by Bulgarian National Bank (BNB) which indicated that Corpbank may incur significant losses, resulting in a larger capital shortfall than previously anticipated,a the global ratings agency said in a statement on Tuesday.
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.
Whatever the final deal and one was reached in the nick of time early on Monday that included a stiff tax on uninsured depositors in the two largest banks much damage has already been done by the escalating uncertainty of the preceding 10 days.