Glossary

This vocabulary holds the terms for the glossary
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A

Asset Separation Tool

Directive 2014/59/EU: The mechanism for effecting a transfer by a resolution authority of assets, rights, or liabilties of an institution under resolution to an asset management vehicle in accordance with Article 42.

Available Financial Means

Directive 2014/49/EU: Cash, deposits, and low-risk assets which can be liquidated within a period not exceeding that referred to in Article 8(1) and payment commitments up to the limit set out in Article 10(3).

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B

Bail-In Tool

Directive 2014/59/EU: The mechanism for effecting the exercise by a resolution authority of the write-down and conversion powers in relation to liabilities of an institution under resolution in accordance with Article 43.

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D

Deposit Guarantee Scheme

Synonyms: Deposit Insurance System, Deposit Insurance Organisation, Deposit Insurance Fund, Deposit Insurance Agency

A system established to protect depositors against the loss of their deposits in the event an insured institution of the deposit insurer is unable to meet its obligations to depositors.        

Directive 2014/49/EU:
Schemes referred to in point (a), (b) or (c) of Article 1(2).

Art. 1 (2):
This Directive shall apply to:
(a) statutory DGSs;
(b) contractual DGSs that are officially recognised as DGSs in accordance with Article 4(2);
(c) institutional protection schemes that are officially recognised as DGSs in accordance with Article 4(2);
(d) credit institutions affiliated to the schemes referred to in points (a), (b) or (c) of this paragraph.

Deposit Insurance

Synonyms: Deposit Guarantee, Deposit Protection

Core Principles: A system established to protect depositors against the loss of their insured deposits in the event that a bank is unable to meet its obligations to the depositors.

Deposit Insurance Scheme

see Deposit Guarantee Scheme

DGSD

EU Deposit Guarantee Scheme Directive 2014/49/EU

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R

Resolution

Directive 2014/59/EU: Application of a resolution toool or a tool referred to in Article 37(9) in order to aachieve one or more of the resolution objectives referred to in Article 31(2).

Core Principles:The disposition plan and process for a non-viable bank. Resolution may include: liquidation and depositor reimbursement, transfer and/or sale of assets and liabilities, the establishment of a temporary bridge institution and the write-down of debt or conversion to equity. Resolution may also include the application of procedures under insolvency law to parts of an entity in resolution, in conjunction with the exercise of resolution powers.

 

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