European Tribune - Comments - Interesting Times in Eurozone Banking.

Interesting Times in Eurozone Banking. | 27 comments (27 topical, 0 editorial, 0 hidden)

Official Banque de France: (none / 1)

La garantie des dépôts		The deposit guarantee
Les dépôts couverts par le mécanisme de garantie des dépôts sont définis comme tout solde créditeur résultant de fonds laissés en compte ou de situations transitoires provenant d'opérations bancaires normales... Le montant maximum de la garantie offerte est fixé à 70 000 euros par déposant. Il s'applique à l'ensemble des dépôts d'un même déposant auprès du même établissement de crédit, quels que soient le nombre de dépôts ou leur localisation dans l'Espace économique européen dans la limite du plafond précité.		Deposits covered by the guarantee mechanism : deposits are defined as any credit balance resulting from funds left in transitional situations or from normal banking operations... The maximum amount of the guarantee shall be 70 000 euros per depositor. It applies to all deposits of one depositor with the same institution, regardless of the number of deposits and their location within the European Economic Area, within the upper limit cited above.

Not quite clear whether "per depositor" means €70K is all you can get, or if it's €70K per banking institution you may use.

But if there's only €100 each in the kitty, it looks theoretical...

by afew (afew(a in a circle)eurotrib_dot_com) on Tue Sep 30th, 2008 at 07:19:25 AM EST
[ Parent ]

Re: Official Banque de France: (none / 1)

TV news were saying it was €70K per banking institution, but then they may have just been trying to paint the French as throw-money-everywhere socialists.

Any idiot can face a crisis - it's day to day living that wears you out.

by ceebs (ceebs (at) eurotrib (dot) com) on Tue Sep 30th, 2008 at 07:24:38 AM EST
[ Parent ]

Re: Official Banque de France: (none / 1)

It is at least €70k per banking institution (because it is about a bank failing. The law is with regards to what you do when one bank fails, so if two fail it applies twice).

The question is what happens if you have over 70k€ with one bank but less than 70 on each individual account. I had assumed that then you'd lose but they were saying otherwise on TV this morning.

The fraction with more than 70k at any given bank is rather small in any case. And most of them get a personal guarantee for being pals with Sarkozy.

Earth provides enough to satisfy every man's need, but not every man's greed. Gandhi

by Cyrille (cyrillev domain yahoo.fr) on Tue Sep 30th, 2008 at 07:48:13 AM EST
[ Parent ]

Re: Official Banque de France: (none / 1)

I have to correct myself:
TV spoke rubbish as usual, it is obviously capped at 70k€ for the accounts as a whole.

Earth provides enough to satisfy every man's need, but not every man's greed. Gandhi

by Cyrille (cyrillev domain yahoo.fr) on Tue Sep 30th, 2008 at 07:49:41 AM EST
[ Parent ]

Re: Official Banque de France: (none / 1)

I can confirm it is 70k€ per person and per bank. If your wealth is 140 k€, split in two different banks and you get 100% coverage.

The amount in the guarantee fund is irrelevant: it will be refinanced by govt' or ECB at first sign of trouble, with newly printed money if need be.

Pierre

by Pierre on Tue Sep 30th, 2008 at 10:49:00 AM EST
[ Parent ]

Re: Official Banque de France: (4.00 / 2)

What fraction of the depositors have €70k?

A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith

by Migeru (migeru at eurotrib dot com) on Tue Sep 30th, 2008 at 07:27:26 AM EST
[ Parent ]

Re: Official Banque de France: (none / 1)

not many, it's already withdrawn and buried under the mattress...

~"When an inner situation is not made conscious, it appears outside as fate." Karl Jung~

by melo (melometa4(at)gmail.com) on Tue Sep 30th, 2008 at 08:01:15 AM EST
[ Parent ]

Re: Official Banque de France: (none / 1)

€70K is damn lumpy, I can tell you. <red eyes>

by afew (afew(a in a circle)eurotrib_dot_com) on Tue Sep 30th, 2008 at 02:36:57 PM EST
[ Parent ]

Re: Official Banque de France: (none / 1)

well, if you insist on the gold nuggets!

140 €500 notes would hardly bother even a persnickety princess.

~"When an inner situation is not made conscious, it appears outside as fate." Karl Jung~

by melo (melometa4(at)gmail.com) on Tue Sep 30th, 2008 at 10:11:04 PM EST
[ Parent ]

Re: Official Banque de France: (4.00 / 2)

I guess every small or medium sized enterprise with at least 3 workers has deposits of more than that in the bank. You just can't handle the cash flow for employees, tax requirements etc. otherwise if you have not at least temporary (say two days before the pay check for the workers has to be paid) more money in your account.

Der Amerikaner ist die Orchidee unter den Menschen
Volker Pispers

by Martin (weiser.mensch(at)googlemail.com) on Tue Sep 30th, 2008 at 08:08:45 AM EST
[ Parent ]

Re: Official Banque de France: (none / 0)

But if there's only €100 each in the kitty, it looks theoretical...

And here we see the beauty of the State: as it has a monopoly on violence, it can always raise more money from the population, as long as said population has got any money.

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid (arvid.hallen at gmail.com) on Tue Sep 30th, 2008 at 10:45:45 AM EST
[ Parent ]

Interesting Times in Eurozone Banking. | 27 comments (27 topical, 0 editorial, 0 hidden)

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