Bankrupt banks rely too much on their depositors. Only accounts with more than 100,000 euros of deposits are concerned, according to a European directive transposed at the France which will apply on January 1, 2016. However, applicants will be invited as a third resort.
So far, banks bankrupt turned to shareholders and creditors as good company qu´elle is. C´EST very normal indeed that shareholders and creditors lose, c´est the game and they are aware. But now there's a novelty.
The information is passed as a letter in the mail and stealthily. From 1 January 2016, the client accounts of more than 100,000 euros of deposits may be taken to contribute to the rescue of their bank, according to a European directive transposed to the France this summer.
• What does this directive?
Directive on the recovery of banks and the resolution of their failures (BRRD) has been transposed by order to the France on August 21. It puts in place a procedure of "bail-in", or "internal bailout", in opposition to 'bail-out', or "external bailout" by the State, which n´a probably most means see my article http://richesse-et-finance.com/gouvernement-aux-abois/. "It especially for govern, in application of the European texts, problems of liquidation of banks," says Pierre Descheemaeker, the cabinet August & Debouzy banking lawyer. The BRRD is a centerpiece of the banking union. "The goal is to restructure the banks on the verge of bankruptcy without having the taxpayer put his hand to the Pocket to preserve financial stability," said in a statement the European Commission.
• What does involve?
So far, the banking institutions into bankruptcy turned to shareholders and creditors. Now, they will have a third possibility: applicants, solicited as a third resort. "We will use internal resources first," says Pierre Descheemaeker. Capital and the Bank's obligations can be immediately used to cover the deficit of the Bank. And finally, bank deposits of more than 100,000 euros. Customers, them n´ont not d´avantages, just c´est a legal flight.
• Applicants should worry?
"It is not too much fear to have, considers Pierre Descheemaeker. We try to implement a system that will allow the Bank to survive, in the interest of its customers, he said. "Banks are stronger, more operational deposit guarantee system, and it is better, in the event of bankruptcy, losing 10-15% of its deposits that all, as before. Well it's true that c´est to prevent a financial crisis, because the banking panic is really a very important disaster. She has a tendency to make domino and truly ultra c´est dangerous.
My opinion staff c´est that if such measures are put in place, it sucks a maximum. Good the only point positive c´est that now investors will have to invest, although I wonder if c´est really a good solution since rates risks lower.
On the other hand, bank deposits, maximum € 100,000 per applicant and per establishment, are guaranteed to l´instant.
Remains to be seen if applicants would be willing to open multiple accounts in different institutions, to never exceed this amount of deposit of 100,000 euros. "This is perfectly possible, notes the lawyer. '' But in practice, it is very difficult. As soon as you are an applicant with a substantial amount, it would be complicated to open a dozen account. This wants to say qu´on will prevent you to do so but c´est always practicable for l´instant. Which implies that l´etat wants to control l´argent, why? Vigipirate maximum level + control, for terrorism really or is it coverage?
Where a bank account is mandatory, banks are companies like others, I find this unacceptable decision.
If a company is in bankruptcy, it will not puncture its customers.
We do everything to take ownership of our money: obligation to have an account, prohibition to pay large sums in cash.
Everyone must know, if your bank goes bankrupt, it is legally entitled to refloat herself typing in your accounts, whether in France or very soon in all European countries.
It can also fail to question the willingness of the Commission to adopt this directive and chasing recent laggards, "it is extremely important that these rules are in place in all Member States" she said in a statement. (…) The knowledgeable people in Brussels fear next financial and banking crisis? I ask myself the question seriously or I am becoming paranoid?
• There – you there precedents?
In 2013, the Central Bank of Cyprus creates a precedent. As part of a plan by European rescue of the financial sector of the island, it accepts punctures of 47.5% on deposits of more than 100,000 euros to the Bank of Cyprus, Bank of the island. A decision which provoked the anger of Cypriots, many to rush to withdraw their money from ATMs of their banks and start to panic.
base article which I made an analysis unique http://www.lefigaro.fr/conjoncture/2015/12/22/20002-20151222ARTFIG00003-les-banques-en-faillite-pourront-desormais-ponctionner-les-comptes-des-deposants.php
And you qu´en do you think?