View Single Post
Old 01.04.2020, 18:29
Reb77Br Reb77Br is offline
Senior Member
Join Date: May 2007
Location: Geneva
Posts: 440
Groaned at 62 Times in 38 Posts
Thanked 1,161 Times in 658 Posts
Reb77Br has a reputation beyond reputeReb77Br has a reputation beyond reputeReb77Br has a reputation beyond reputeReb77Br has a reputation beyond reputeReb77Br has a reputation beyond repute
Re: Are your bank deposits exposed to potential bank bail in?

View Post
Where is the 250k figure coming from?

I thought Swiss bank accounts are backed by the government up to 100k per account, everything above that is a loss
No mention of 250k in the OP's link.

If there is no prospect of restructuring, FINMA will withdraw the bank’s license, order its liquidation due to bankruptcy and announce this publicly. The aim of the bankruptcy procedure is to meet the claims of all creditors equally in accordance with their ranking. Immediately after the opening of the bankruptcy proceedings, the privileged deposits of the bank’s customers up to a maximum of CHF 100,000 per depositor are paid out immediately from the available liquid assets of the bankrupt institution. If the liquid assets are insufficient to pay this amount, the shortfall up to the limit of CHF 100,000 for privileged deposits held at branches in Switzerland (insured deposits) is covered by the deposit insurance scheme as far as possible.

Hierarchy: There are clear rules for the bail-in, particularly on the hierarchy according to which creditor claims are converted. First equity capital is written down, subordinated claims are converted, then the other senior
debt and only after that the non-preferred deposits (i.e. deposits over CHF 100,000). Privileged claims – particularly deposits of up to CHF 100,000 – as well as secured claims and claims eligible for netting are excluded from a bail-in.
Reply With Quote