The National Government are pushing a Cyprus-style solution to bank failure in New Zealand which will see small depositors lose some of their savings to fund big bank bailouts, the Green Party said today.
Open Bank Resolution (OBR) is Finance Minister Bill English’s favoured option dealing with a major bank failure. If a bank fails under OBR, all depositors will have their savings reduced overnight to fund the bank’s bail out.
“Bill English is proposing a Cyprus-style solution for managing bank failure here in New Zealand – a solution that will see small depositors lose some of their savings to fund big bank bailouts,” said Green Party Co-leader Dr Russel Norman.
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Anonymous2013-03-28 21:24
You see this is why we need a-salt rifles. In case the gubment tries to pull some shit like this.
“Banks are under severe distress,” said International Monetary Fund in its annual health check on the country. Non-performing loans of the Slovenia’s three largest banks reached 20.5pc last year, with a third of all corporate loans turning bad.
Yields on two-year debt in the Alpine state have tripled over the past week, jumping from 1.2pc to 4.26pc before falling back slightly on Thursday. Ten-year yields have reached a post-EMU high of 6.25pc.
2
Budget deficit in 2012 - 3.7%, in 2011 - 6.4%. Reduction was because of public spending cuts, which caused unrest last year. Even in this case, it is predicted that the deficit will rise to 4.2% because of the intentions of the government to save the banks.
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Anonymous2013-04-07 20:43
Harper's plan to save Canada's banks is following the Cyprus template:
Establishing a Risk Management Framework for Domestic Systemically Important Banks
Economic Action Plan 2013 will implement a comprehensive risk management framework for Canada’s systemically important banks.
Canada’s large banks are a source of strength for the Canadian economy. Our large banks have become increasingly successful in international markets, creating jobs at home.
The Government also recognizes the need to manage the risks associated with systemically important banks–those banks whose distress or failure could cause a disruption to the financial system and, in turn, negative impacts on the economy. This requires strong prudential oversight and a robust set of options for resolving these institutions without the use of taxpayer funds, in the unlikely event that one becomes non-viable.
The Government intends to implement a comprehensive risk management framework for Canada’s systemically important banks. This framework will be consistent with reforms in other countries and key international standards, such as the Financial Stability Board’s Key Attributes of Effective Resolution Regimes for Financial Institutions, and will work alongside the existing Canadian regulatory capital regime. The risk management framework will include the following elements:
* Systemically important banks will face a higher capital requirement, as determined by the Superintendent of Financial Institutions.
* The Government proposes to implement a “bail-in” regime for systemically important banks. This regime will be designed to ensure that, in the unlikely event that a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability through the very rapid conversion of certain bank liabilities into regulatory capital. This will reduce risks for taxpayers. The Government will consult stakeholders on how best to implement a bail-in regime in Canada. Implementation timelines will allow for a smooth transition for affected institutions, investors and other market participants.
* Systemically important banks will continue to be subject to existing risk management requirements, including enhanced supervision and recovery and resolution plans.
This risk management framework will limit the unfair advantage that could be gained by Canada’s systemically important banks through the mistaken belief by investors and other market participants that these institutions are “too big to fail.”
conversion = expropriation
certain bank liabilities = bank's customers' deposits
regulatory capital = funds that now belong to the banks themselves
>>7
He is a Zionist, young-Earth creationist, closet boylover fag.
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Anonymous2013-04-08 21:49
President Putin found a solution to Cyprus problems.
Putin recapped the main points of his Friday interview with the German broadcaster ARD and said that a great amount of resources was sent from abroad to affect Russia’s internal politics. He also again reminded that the sum of foreign aid to Russian-based political NGOs exceeded 28 billion rubles (over US$940 million) in just four months.
“This cannot be left without questions,” Putin noted.
He said that the equal amount of money could be used to solve the recent financial problems of Cyprus.
“They could have forwarded these significant sums to help Cyprus so that there was no need to rip off the poor bank clients,” Putin told reporters. He reminded the press that Russian authorities had ordered the restructuring of the 2.5-billion-euro Cypriot debt to Russia, thus making an input to the solution of the financial crisis.