The global financial crisis highlighted the importance of effective schemes for compensating depo... more The global financial crisis highlighted the importance of effective schemes for compensating depositors when banks fail (see FSB 2012, p. 1). But what makes a deposit insurance scheme effective, and how can a deposit insurance agency improve its operations? One source of guidance is the Core Principles for Effective Deposit Insurance Systems (BCBS and IADI 2009). Deposit insurers are increasingly using the Core Principles to complete self-assessments to guide their strategic planning. In addition to self-assessments, three Standards and Codes Assessments utilizing the Core Principles have been carried out through the World Bank and International Monetary Fund's Financial Sector Assessment Program (FSAP). 1 This Note references the guidance developed by standard setters on deposit insurance generally and summarizes some of the issues that have developed around the specific application of the Core Principles.
The author would like to acknowledge the significant contributions of Murat Arslaner in developin... more The author would like to acknowledge the significant contributions of Murat Arslaner in developing the Least Cost or Lesser Cost Model and Explanatory Guide and Yejin Carol Lee for research assistance and editorial support on the Toolkit. The author would also like to thank David Scott, Aurora Ferrari and Shamsuddin Ahmad for their time in review of drafts and their many useful comments. The views presented in the paper do not necessarily represent the views of the World Bank. Make Use of a Resolutions Manual Legal agreements for all types of authorized actions, such as Purchase and Assumptions, Receiverships, Conservatorships, and Bridge Banks, should be drafted, along with tools for the actual closing of a bank, such as appointment papers, press releases, and anticipated Frequently Asked Questions with proposed answers (FAQs) (see FAQs, Form 20). Authorities should also have a Resolutions Manual as part of their Toolkit that will guide the person in charge of the resolved institution in performing the job of managing the assets, establishing a claims process, and finalizing the termination of a Receivership. The Resolutions Manual should outline all the steps needed for a bank closing or the appointment of a Receiver. These steps should correspond to the process for bank closing established by an individual country's legal framework. Some of these steps may also be needed for the appointment of a Temporary Administrator or Conservator. The outline here is designed to be generic and covers the steps that would most likely have to be undertaken to effectively close an operating bank. Used as part of the communications strategy for the Receivership and can be updated as new information becomes available. 21. Script for Initial Meeting with Employees Immediately after a Bank Has Been Closed Can be used to insure that the message given to the employees is the same at all the branches of a bank that is closed. 22. Post Closing Strategic Resolution Plan Can be used by a Temporary Administrator or a Receiver to plan for the management and disposition of assets. 23. Proof of Claim Form Used by creditors of the failed bank to file claims on the assets of the Receivership estate to be considered for allowance or disallowance. 24. Sample Case Memorandum Used to record sale or expenditures during Receivership. 25. Notice to All Parties of the Termination of the Used to give the public notice that the Receivership will be terminated and to provide information on Receivership how to contact the Receiver with any questions 26. Suggested Outline for an After Action Report Used to prepare a report on what went well and what could have been improved in managing the entire process of closing a bank to inform future similar decisions.
Policy makers worldwide are increasingly appreciating the expanding role that digital financial s... more Policy makers worldwide are increasingly appreciating the expanding role that digital financial services play in reaching financially excluded and underserved customers. Though models vary widely, all have at their heart a low-cost digital financial product such as e-money issued by a mobile network operator (MNO) or financial institution that permits customers to make payments, to transfer money, and to store value in small amounts. This value-storage functionality enables the offering of additional services such as digital credit and off-grid electricity on a pay as one go basis - services better tailored to the unpredictable cash flow of poor households and microenterprises.
The global financial crisis highlighted the importance of effective schemes for compensating depo... more The global financial crisis highlighted the importance of effective schemes for compensating depositors when banks fail (see FSB 2012, p. 1). But what makes a deposit insurance scheme effective, and how can a deposit insurance agency improve its operations? One source of guidance is the Core Principles for Effective Deposit Insurance Systems (BCBS and IADI 2009). Deposit insurers are increasingly using the Core Principles to complete self-assessments to guide their strategic planning. In addition to self-assessments, three Standards and Codes Assessments utilizing the Core Principles have been carried out through the World Bank and International Monetary Fund's Financial Sector Assessment Program (FSAP). 1 This Note references the guidance developed by standard setters on deposit insurance generally and summarizes some of the issues that have developed around the specific application of the Core Principles.
The author would like to acknowledge the significant contributions of Murat Arslaner in developin... more The author would like to acknowledge the significant contributions of Murat Arslaner in developing the Least Cost or Lesser Cost Model and Explanatory Guide and Yejin Carol Lee for research assistance and editorial support on the Toolkit. The author would also like to thank David Scott, Aurora Ferrari and Shamsuddin Ahmad for their time in review of drafts and their many useful comments. The views presented in the paper do not necessarily represent the views of the World Bank. Make Use of a Resolutions Manual Legal agreements for all types of authorized actions, such as Purchase and Assumptions, Receiverships, Conservatorships, and Bridge Banks, should be drafted, along with tools for the actual closing of a bank, such as appointment papers, press releases, and anticipated Frequently Asked Questions with proposed answers (FAQs) (see FAQs, Form 20). Authorities should also have a Resolutions Manual as part of their Toolkit that will guide the person in charge of the resolved institution in performing the job of managing the assets, establishing a claims process, and finalizing the termination of a Receivership. The Resolutions Manual should outline all the steps needed for a bank closing or the appointment of a Receiver. These steps should correspond to the process for bank closing established by an individual country's legal framework. Some of these steps may also be needed for the appointment of a Temporary Administrator or Conservator. The outline here is designed to be generic and covers the steps that would most likely have to be undertaken to effectively close an operating bank. Used as part of the communications strategy for the Receivership and can be updated as new information becomes available. 21. Script for Initial Meeting with Employees Immediately after a Bank Has Been Closed Can be used to insure that the message given to the employees is the same at all the branches of a bank that is closed. 22. Post Closing Strategic Resolution Plan Can be used by a Temporary Administrator or a Receiver to plan for the management and disposition of assets. 23. Proof of Claim Form Used by creditors of the failed bank to file claims on the assets of the Receivership estate to be considered for allowance or disallowance. 24. Sample Case Memorandum Used to record sale or expenditures during Receivership. 25. Notice to All Parties of the Termination of the Used to give the public notice that the Receivership will be terminated and to provide information on Receivership how to contact the Receiver with any questions 26. Suggested Outline for an After Action Report Used to prepare a report on what went well and what could have been improved in managing the entire process of closing a bank to inform future similar decisions.
Policy makers worldwide are increasingly appreciating the expanding role that digital financial s... more Policy makers worldwide are increasingly appreciating the expanding role that digital financial services play in reaching financially excluded and underserved customers. Though models vary widely, all have at their heart a low-cost digital financial product such as e-money issued by a mobile network operator (MNO) or financial institution that permits customers to make payments, to transfer money, and to store value in small amounts. This value-storage functionality enables the offering of additional services such as digital credit and off-grid electricity on a pay as one go basis - services better tailored to the unpredictable cash flow of poor households and microenterprises.
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