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.
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
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.