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Session 1. Overview of the member-countries’ deposit insurance systems

Session 1. Overview of the member-countries’ deposit insurance systems Bank Guarantee Fund – Poland. Jerzy Pruski President of the Bank Guarantee Fund. Fourth annual meeting and seminar of the Eurasia Regional Committee.

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Session 1. Overview of the member-countries’ deposit insurance systems

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  1. Session 1. Overview of the member-countries’ deposit insurance systems Bank Guarantee Fund – Poland Jerzy Pruski President of the Bank Guarantee Fund Fourth annual meeting and seminar of the Eurasia Regional Committee «Problem banks resolution methods and payouts of the insurance coverage» Almaty, 14th September 2011

  2. Legal basis and mandate of the BFG Legal basis Mandate • paying-out deposits • granting financial assistance for troubled banks (resolution) • analyses of the banks’ financial situation • monitoring & supervising banks regarding the: • usage of the financial assistance, • depositors’ SCV data for potential deposits’ paying-out Bank Guarantee Fund Act of 14 December 1994 art. 4 Statutes – Resolution of the Minister of Finance

  3. Legal basis and mandate of the BFG I. Paying-out deposits previously currently planned 3 month pay-out period + possible 3x3 months extensions pay-out in the bankruptcy proceedings (made by the trustee) 22 500 than 50 000 euro coverage big enterprises excluded coinsurance set-off 20 working days + possible 10 working days trigger point before the bankruptcy proceedings – possible reimbursement via agent banks 100 000 euro coverage all enterprises covered no coinsurance no set-off SCV implemented – special regime put on the banking data supervision over SCV • Works on the new EU Directive, harmonization of: • funding • definition of a deposit and a depositor • cross border cooperation

  4. Legal basis and mandate of the BFG II. Resolution planned previously currently • Assistance granted in case of the threat of bank’s insolvency • For self-rehabilitation and – preferred – for acquisition • Tools: • - Loans • Guarantees / endorsements • Acquisition of receivables New resolution regime in line with the planned EU regulations

  5. Legal base and mandate of the BFG III. Financial analyses previously planned currently Monitoring of the financial situation Early warning system Determination of the annual premium rates Determination of the annual premium rates Banks’ sectoral analysis Banks’ sectoral analysis IV. Monitoring & supervision previously currently planned monitoring & supervision over banks using Fund’s financial assistance monitoring & supervision over banks using Fund’s financial assistance supervision over the SCV data processed by banks

  6. Fund’s experience dynamic restructurisation of banking system form pay-out to assistance mergers’ support Improvement of the situation

  7. Well defined variety of funding sources Ex-post Ex-ante Other own funds Fund for protection of guaranteed deposits Assistance fund Extraordinary sources annually determined rate of the fund annually determined premium rate • statutory fund • reserve fund • financial means from State Budget • loan from the National Bank of Poland Using funds for paying-out deposits Possibility of raising rates of banks’ contributions by the Minister of Finance Financial assistance (bank resolution)

  8. BFG’s model of financing • Fund capitalization – premium rate history

  9. BFG’s model of financing • Fund capitalization – premium rate history

  10. BFG’s position in bankruptcy proceedings Suspension of bank’s operations Declaration of bank’s bankruptcy • Rules of claims’ satisfaction: • BFG’s claims are in class two, reimbursed: • after costs of bankruptcy proceedings; • together with claims arising under employment relationships • before taxes and claims of non-covered depositors Non-covered claims of depositors against the bankruptcy estate Non-covered claims of depositors against the bank Depositors’ claims against the bank BFG’s claim against the bank BFG’s claim against the bankruptcy estate Covered claims of depositors are passed to the BFG BFG’s pay-out for covered depositors

  11. Robust domestic stability network as prerequisite for effective cross-border safety net Ministry of Finance Central Bank/ ? Macroprudential Central Bank strong & complete domestic financial stability system Deposit Guarantee Scheme Financial Services Authority Resolution & pay-box

  12. THANK YOU FOR YOUR ATTENTION

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