These institutions could be carved out of commercial banks, leaving behind the depositor-only entities.
Data and economic reality show that a depositor haircut has been a long time coming.
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There are limits as to how much any one depositor can get back for example.
With its huge depositor base, private investors salivated over the prospect of buying it up.
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Presently, the money becomes the property of the bank and the depositor receives a demand note.
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Clearly the Cypriot parliament must deliver its side of the bargain by voting through the depositor levy.
The bank had embarrassed Japan internationally, said Shintaro Ishihara, governor of Tokyo, which is Mizuho's largest depositor.
Conversely, if you are a wealthy Russian depositor in a Cyprus bank, this is a pretty raw deal.
Today the Cypriot parliament is expected to vote on the proposed bailout measures, including the controversial depositor levy.
Early Islamic banks tried operating on these bases, with risks and losses shared among bank, depositor and borrower alike.
But for the smaller retail depositor, we do try to make sure that they understand our deposit insurance rules.
They have even helped with bank strategy by allowing clients to concentrate on growing their depositor and borrower base.
Private insurance is another option for the entity or the depositor, but one which has a cost associated with it.
If a wire arrived at a bank, properly coded and sent, anything they did could be a disaster to the depositor.
Writing such a depositor preference into law would have two major consequences.
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The depositor losses were an IMF initiative from the start, officials say.
Pensions are a contract between an employee and his employer that is not unlike the contract between a depositor and his banker.
They also put physical and psychological distance between the depositor and his bank, which is counter to the idea of a community bank.
Under that decision, money deposited into a bank is the property of the bank and the depositor holds a demand note in return.
Depositor action groups say that KSFIOM should be placed into liquidation, which would trigger payouts from the Isle of Man depositor protection scheme.
But it also risks triggering depositor panic across Europe's weaker banking systems, something the euro zone spent most of 2012 trying to avoid.
In that event, the sensible depositor would withdraw their money in physical Euro form, pack it into a suitcase and bury it in their garden.
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But if you were a depositor in a peripheral country that looked like it needed more money from the euro zone, what would your calculation be?
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Of course, one would think that a depositor would realize if they were hit with heavy overdraft fees, but clear disclosure is always a good thing.
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Its use may halt a bank run, but at the cost of eventually trashing the value of the currency and indirectly the value of depositor accounts too.
Change banking laws so that money deposited in a bank remains the property of the depositor just as it would if he deposited the money in a warehouse.
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We have had nearly five years when governments were nervous of suggesting that anybody could lose anything they lent to a bank, either as a depositor or an investor.
However, given the full extent of unrealized bad debts in Europe, it is hard to see why anyone should rule out depositor levies being imposed elsewhere in the future.
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While I understand its appeal as a tool for resolving banking problems, I think the use of depositor levies could end up causing significant problems for the European banking sector.
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