Liability of individual depositors

Legal provision stipulating the partial expropriation of a bank’s customers’ deposits if the bank runs into difficulties. In the course of the Cyprus crisis in spring 2013, depositors with more than 100,000 euros were called in for bank restructuring on the basis of the Troika’s recommendations. The original plan was to charge all deposits – including those of small savers – a certain percentage for the restructuring. – As of 2015, the Commission wants a separate set of rules to come into force in the EU that will regulate the details of how depositors, too, are to be involved in the event of a bank’s failure. In principle, it is incomprehensible that banks should take high risks in the expectation of making a profit, swallow the profits they make, but in the event of a loss, require uninvolved parties to step in: a “socialization of business failures. – See bank bailout, bank resolution institution, creditor priority, moral hazard, rescue.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/