{"id":31707,"date":"2018-02-28T10:04:25","date_gmt":"2018-02-28T15:04:25","guid":{"rendered":"http:\/\/olduvai.ca\/?p=31707"},"modified":"2018-02-28T10:04:25","modified_gmt":"2018-02-28T15:04:25","slug":"a-new-cunning-plan-to-allay-banking-jitters-is-hatched-in-spain","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=31707","title":{"rendered":"A New Cunning Plan to Allay Banking Jitters is Hatched in Spain"},"content":{"rendered":"<header>\n<h3 class=\"entry-title\"><a href=\"https:\/\/wolfstreet.com\/2018\/02\/27\/new-plan-banking-jitters-in-spain\/#comment-126151\">A New Cunning Plan to Allay Banking Jitters is Hatched in Spain<\/a><\/h3>\n<\/header>\n<div class=\"entry-content\">\n<p><strong>But there\u2019s a problem with the plan.<\/strong><\/p>\n<p>The Spanish Government has a brand new cunning plan to fortify the country\u2019s banking system, which was rocked last year by the collapse of the sixth biggest bank, Banco Popular. It wants the country\u2019s Deposit Guarantee Fund (DGF) to insure the entire bank deposits of large companies, even if those deposits exceed the current limit of \u20ac100,000, so that if a bank begins to wobble, its corporate customers don\u2019t take their money out <em>en masse<\/em>.<\/p>\n<p>The government hopes that the plan will be included in the new banking resolution rules being drawn up by EU banking authorities in the aftermath of Banco Popular\u2019s quickfire resolution last year, the financial daily Cinco Dias <a href=\"https:\/\/cincodias.elpais.com\/cincodias\/2018\/02\/16\/companias\/1518816943_551016.html\">reports<\/a>.<\/p>\n<p>If the law is passed, it would mean that corporate deposits of any amounts would be guaranteed in case of a bank\u2019s resolution. The proposal apparently enjoys the enthusiastic support of Spain\u2019s major banks, large companies, and the president of Spain\u2019s Fund for Orderly Bank Restructuring (FROB), Jaime Ponce. The government also wants the deposits of large public institutions to be covered without limit, as well as those of small and medium size enterprises (SMEs).<\/p>\n<p>The new law would help prevent large scale deposit flight, which became endemic during Spain\u2019s banking crisis and was also instrumental in the collapse of Popular. According to Ponce, if the government\u2019s newly proposed measure had been in force between May and June last year, the frantic run on the bank\u2019s deposits from Popular would never have happened.<\/p>\n<p>In its final days, Popular was bleeding funds at an average rate of \u20ac2 billion a day.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A New Cunning Plan to Allay Banking Jitters is Hatched in Spain But there\u2019s a problem with the plan. The Spanish Government has a brand new cunning plan to fortify the country\u2019s banking system, which was rocked last year by the collapse of the sixth biggest bank, Banco Popular. It wants the country\u2019s Deposit Guarantee [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[13915,63,171,18998,5660,743,4197,4255],"class_list":["post-31707","post","type-post","status-publish","format-standard","hentry","category-economics","tag-banco-popular","tag-banks","tag-corporations","tag-deposit-guarantee-fund","tag-don-quijones","tag-spain","tag-spanish-government","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31707","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31707"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31707\/revisions"}],"predecessor-version":[{"id":31708,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31707\/revisions\/31708"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31707"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31707"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31707"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}