Deposit Guarantee Claims
Individuals and corporations can benefit from international banking and finance in many ways. They can choose the most suitable solution for the selected financial structure to match their administrative, fiscal, and managerial needs. Many times, these solutions are satisfactory for everyone. It is sometimes difficult to contact foreign service providers and financial institutions when things go wrong. It is then that a clear understanding of the applicable rules is essential. Deposit Guarantee Claims aim to protect the financial system by guaranteeing eligible bank account deposits up to a certain limit. Whether a bank deposit qualifies for deposit insurance depends on local requirements.
Distressed banking situations may go unnoticed, but their consequences are major. The closure of a bank triggers a series of administrative events. Managing and limiting risk is the objective of the decree. For international account holders and other creditors this is a difficult situation where knowledge and understanding of foreign and most all alien legal systems must be obtained at lightning speed. After the resolution decree is announced by the appropriate supervisor, statutory administration takes office. For most creditors, statutory administration and deposit insurance provide relief. Repayment of their outstanding account balance is done via restricted repayment opportunities and deposit guarantee claims. Compliance with these repayment opportunities requires a close examination of the rules.
Claim filing procedures and other routes for asset recovery are available for international creditors. The rules are straightforward and imminent for claimants who are unable to comply with the requirements. Therefore, recovery planning should be part of their strategy. Even though it often sounds counterintuitive to engage a pro-active attitude, maximum control over the situation allows for the best position to be in.
Since deposit protection is based on local concerns and domestic economies, international creditors often have a distinct position. When it comes to bank failure in international financial centers and offshore jurisdictions, there is an additional level of certainty required for these creditors. Some jurisdictions only protect deposits held in local currency, while others exclude specific account activities and branches. It is therefore recommended that claimants examine the directives with care. Claimants can find most information online but may also decide to retain specialized assistance. In particular when such firms work on a contingency basis and only charge upon result. Legal Floris LLC, the operator of this website, is such a firm. More information about us, and the deposit guarantee claim program that includes the asset recovery strategies we offer is available here.