Bank Guarantee - anybody else confused?

the drifter

ok total stupid pleb question here...but say a bank went bust in the morning..and i had money in it..under the goverment guarentee scheme where would i get my moeny from then...sorry again but im crap with banking..

Jet Black

Good question. Would have said the government.

How the scheme is funded

General

Funding of the compensation scheme is by contributions from firms which are authorised to conduct investment and/or insurance services. For details on the categories of firms which fall within the scope of the Scheme, please click here. The method of calculating the contribution payable was decided following four extensive processes of consultation with firms and industry representative groups (1999, 2001, 2004 and 2007). The latest consultation process commenced in November 2006 and culminated in the publication of new funding arrangements in 2007 (See Funding Review).

^
From investorcompensation.ie

and even more detail herehttp://www.financialregulator.ie/frame_main.asp?pg=/industry/in_bci_dps_intr.asp&nv=/industry/in_nav.asp Follow links

BendiBus

So it involves filling out an application form to get your money. I wonder how long that would take to process if there were several hundred thousand claims made at the same time :eek:

the drifter

good info there...but this is for the banks to get there money... im talking about if say bank A went tits up and i need some funds the following morning...how do i get my funds? will the local branch of Bank A have its doors padlocked? or will the goverment take control of the bank?

BendiBus

Here's a little warning as to what might happen

Meanwhile, the British arm of Landsbanki stopped UK customers withdrawing or depositing money today, it announced, as Icelandic authorities said they were taking control of the bank.

http://www.rte.ie/business/2008/1007/iceland.html

Regardless of 100% guarantees, probably wise to keep some cash to hand in at least 2 different banks.

BendiBus

BendiBus wrote: »

So it involves filling out an application form to get your money. I wonder how long that would take to process if there were several hundred thousand claims made at the same time :eek:

To answer my own question, here's the law on the matter (for the €100K guarantee at least)

(4) Subject to paragraph (5), the Bank shall be in a position to pay duly verified claims by depositors in respect of eligible unavailable deposits within three months of the date on which the Bank made a determination or the court made a ruling under Regulation 9.


(5) In wholly exceptional circumstances and in special cases the Bank may provide for up to three extensions of the time limit in paragraph (4), each of which extensions shall not exceed three months.

http://www.irishstatutebook.ie/1995/en/si/0168.html

So it could in wholly exceptional circumstances - and who would argue current circumstances aren't - take up to a year to get your money back.

Thanks to AAM for providing the link to statute.

Tarakiwa

Does anybody know FOR SURE if the government are guaranteeing 100% of personal deposits or providing a guarantee for 100K of personal deposits?

I know that they are guaranteeing bank debt but I am confused if 100% of personal deposits are under guarantee!

Sorry if this is a dumb ass question but I really am confused!

unclebill98

Its still not confirmed as they are doing up the deal. 100% of 100k is in place.

Ogham

100% of all deposits are guaranteed in law in AIB ,BOI ,Anglo Irish ,Nationwide PTSB,EBS
The details of how it will work and how the banks will be charged are to be finalised - but the guarantee is in place since last Thursday.

Tarakiwa

unclebill98 wrote: »

Its still not confirmed as they are doing up the deal. 100% of 100k is in place.

Ogham wrote: »

100% of all deposits are guaranteed in law in AIB ,BOI ,Anglo Irish ,Nationwide PTSB,EBS
The details of how it will work and how the banks will be charged are to be finalised - but the guarantee is in place since last Thursday.

See why I am confused??

1 person saying that all we know for SURE is that 100K is safe
1 person saying that ALL deposits with the 6 banks are safe

VERY confusing!