How relevant is the 100k guarantee

Sarenco said:
the ECB won’t come to the rescue of depositors in a Latvian bank.
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Why would it? It's the supervisor not the resolution authority. The ECB’s job is to declare a bank failing or likely to fail. Then the Single Resolution Board (SRB) resolves the bank which can involve the write-down of certain classes of creditors and in some cases drawing on the national DGS.
 
Sarenco said:
Representing less that 1% of covered deposits…
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Are you confusing the national DGSs with the EU Single Resolution Fund?

Even if not the 1% is not a low number. It’s not efficient for DGSs or resolution funds to hold vast assets as it has an opportunity cost and encourages risk taking by banks.

Their main purpose of DGSs and the SRF is to prevent contagion via bank runs which can leave solvent banks illiquid. So when a bank fails it fails it should fail quickly, small to medium depositors get their money back straight away and no one panics.
 
Sarenco said:
I didn’t suggest that it should
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You raised the ECB (supervisor) in response to a comment about the EBA (standard setter).

Sarenco said:
I’m familiar with the resolution framework.
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I don’t see evidence of it to be honest and there is a lot of confusion on this thread which you haven’t reduced.

I mean this as kindly as possible - you are in my experience one of the most knowledgeable posters on AAM.
 
NoRegretsCoyote said:
You raised the ECB (supervisor) in response to a comment about the EBA (standard setter).
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No I didn’t!

I was simply making the point that DGS are national schemes - there is no centralised, unified EU guarantee scheme.

That’s all.

Nothing to do with the EBA or the EU’s bank resolution framework.
 
Sarenco said:
I am, but I’m also making a point.

DGS are national schemes; the ECB won’t come to the rescue of depositors in a Latvian bank.
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Nobody said they would. Nobody mentioned the ECB. You still seem unable to accept that EU deposit guarantee schemes can mean deposit guarantee schemes within the EU. An Irish company is an EU company. Etc. Hence the use by EBA and many other EU entities of the phrase.
 
podgerodge said:
An Irish company is an EU company. Etc.
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An EU company (known as a Societas Europaea or SE) is a company registered in accordance with the corporate law of the EU.

An Irish company, on the other hand, is registered in accordance with the corporate law of Ireland.

So, there’s a difference.

If you meant DGS operating within the EU, you could have said so.

Anyway, I simply wanted to make the point that there is no single, unified EU DGS.

I think you agree with that so let’s move on…
 
ThisisMax said:
Im interested in finding out where I can deposit 150K safely and make money on interest.
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Given the topic of this particular thread, you should deposit only €100k in any single EU bank if you want to ensure deposit protection coverage. Otherwise, you are (albeit unlikely) 'risking' 50k. There are a few threads on here showing where you can get a decent rate of interest.
 
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Sarenco said:
An EU company (known as a Societas Europaea or SE) is a company registered in accordance with the corporate law of the EU.

An Irish company, on the other hand, is registered in accordance with the corporate law of Ireland.

So, there’s a difference.

If you meant DGS operating within the EU, you could have said so.

Anyway, I simply wanted to make the point that there is no single, unified EU DGS.

I think you agree with that so let’s move on…
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With all due respect, you still seem to be carrying the same issue with reading things the way they are intended. I referred to EU DGSs, and EU companies - in the simplest sense that they are entities within the EU. Everyone knows what I meant. Nearly everyone.

Have a google of "EU companies" too - you'll find they include Irish companies and many other nations. It's another generic phrase, understood by the multitudes, and is not meant to refer to SE's, as you know.

I'm happy to move on too, and am glad that my deposits, in a couple of EU banks (hmm), are covered by EU DGSs :)

ps. Are the European Commission only referring to SE's in the attached? If not, you should correct them.
 

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podgerodge said:
Given the topic of this particular thread, you should deposit only €100k in any single EU bank if you want to ensure deposit protection coverage. Otherwise, you are (albeit unlikely) 'risking' 50k. There are a few threads on here showing where you can get a decent rate of interest.
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Thanks. I had a look at raisin. Not sure it sounds good as a guarantee?

If you go to the 3% offer: https://www.raisin.ie/term-deposit/banca-farmafactoring-3-months-bff604/#bank-product-details


Security and deposit guarantee
Italy is a republic in southern Europe, one of the largest economies in the world and, according to the Human Development Index (HDI), one of the most developed countries. In addition, Italy has been one of the founders of the EU and a member of the euro zone since 2002.

S&P Credit status country: BBB (Date April 26, 2019)
 
podgerodge said:
Given the topic of this particular thread, you should deposit only €100k in any single EU bank if you want to ensure deposit protection coverage. Otherwise, you are (albeit unlikely) 'risking' 50k. There are a few threads on here showing where you can get a decent rate of interest.
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Yes. This says it all in one sentence. Technically, it should be a 'covered institution' , i.e. an institution covered by the relevant DGS.
 
podgerodge said:
Given the topic of this particular thread, you should deposit only €100k in any single EU bank if you want to ensure deposit protection coverage. Otherwise, you are (albeit unlikely) 'risking' 50k. There are a few threads on here showing where you can get a decent rate of interest.
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I'm a new comer here also and, still looking for categorical confirmation that, should the bank in question run into difficulty, said protection is a certainty (on amounts up to that limit).

Talk of "deposit guarantee schemes" applying to the state, not being covered by the ECB...... are leaving a less than comprehensively informed potential investor such as myself, on the fence.
 
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ThisisMax said:
Thanks. I had a look at raisin. Not sure it sounds good as a guarantee?

If you go to the 3% offer: https://www.raisin.ie/term-deposit/banca-farmafactoring-3-months-bff604/#bank-product-details


Security and deposit guarantee
Italy is a republic in southern Europe, one of the largest economies in the world and, according to the Human Development Index (HDI), one of the most developed countries. In addition, Italy has been one of the founders of the EU and a member of the euro zone since 2002.

S&P Credit status country: BBB (Date April 26, 2019)
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7. Risks

Issuer Risk: the repayment of the term deposit carries the risk of insolvency of the bank.

Payment Risk: Economic or political instabilities in individual countries can lead to cause restrictions on the conversion of the local currency (e.g., exchange rate or maximum amount of conversion). These restrictions could reduce your payout amount despite of the solvency of the partner bank. Reasons for that can be restrictions on transfers or changes in legislation.

Other Risks, such as price risk, business risk, interest rate risk, do not exist.

.......

Not entirely clear whether the "relevant countries Deposit Guarantee Scheme" precludes this risk?
 
I have decided to hold all my money with aib. I have trialled bunq and an post and not happy with them. Bunq security is non existent and an post app and web site issues are a joke.

Aib security is excellent and I'm very happy with them so I'll accept the risk of holding over 100k in same institution
 
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