Credit Suisse, what happens to savers and accounts in bankruptcy –

Credit Suisse, what happens to savers and accounts in bankruptcy –

What happens to Credit Suisse savers in the event of bankruptcy? Even in Switzerland, like Italy, there is a bailout for those who have money kept in a troubled bank. It is activated by Esisuisse, an association founded in Basel in 2005 that includes all credit institutions with branches in Switzerland. If FINMA, that is, the Swiss Federal Financial Market Supervisory Authority, opens bankruptcy liquidation proceedings for a bank (but also for a securities company), in order to immediately repay the lien deposits, it first relies on the liquidity available to the asset institution. Esisuisse intervenes only if the available liquid assets are insufficient to pay customers’ secured deposits directly: the Association of Banks will then collect the resources among its members and send them within 20 working days to FINMA who proceeds to transfer them to account holders. If the bank has sufficient liquidity, customers are compensated up to a maximum of 100,000 Swiss francs. If that wasn’t enough, Esisuisse covers the difference. The maximum that the association can allocate is 6 billion francs.

Is there a rush to withdraw deposits from the Swiss bank?

The fear now is that there will be a bank run on deposits from the struggling Swiss bank: Activetrades experts emphasized in any case that for Credit Suisse it did not result from a bank run, unlike what happened to Svb. Credit Suisse itself asked the Zurich Stock Exchange and the Swiss Central Bank to provide reassurances to clients, that the group’s shares somewhat underestimated the collapse, although they closed down 24.24%.

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In Italy

In Italy, the insurance scheme for savers’ money is similar: the Interbank fund covers up to €100,000 (CHF102,000). The minimum applies to each depositor, to each bank. If the depositor has several deposits made in the same bank, the accounts are pooled and the guarantee limit of €100,000 is applied to the total amount.

Chapters, social security and abroad

Funds over 100,000 euros are not covered by the deposit guarantee, and therefore they are allocated to the so-called “third bankruptcy class”, that is, they are at least partially repaid at the end of the bank’s liquidation procedures. All holders of current accounts up to 100,000 francs and those with deposits in the pension sector (Pillar 3a) are paid first, i.e. “Restricted pension provision”, paid-up capital and restricted until retirement. A legal person (excluding institutions) holding deposits registered with branches of banks and securities companies in Switzerland”, regardless of whether that person is resident in Switzerland or abroad. Secured deposits include funds in personal, savings, investment, salary, numbered and joint accounts as well as Current, association and rental deposit accounts.Medium-term bonds deposited in the name of the bearer with the issuing institution also fall under this category.

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