Regulatory Competition between the Deposit Insurer and a Single Financial Regulator - The Case of Germany
39 Int'l Law. 3 (2005)
Posted: 13 Jul 2014
Date Written: November 12, 2004
In May 2002, Germany's new single supervisory authority for financial services became operational. The paper examines the impact of this reform on existing deposit insurance schemes within the country. Focusing on the private banks' deposit insurance fund, which had played an important role as a de facto-supervisor since its creation in the 1970s, it argues that any reform of regulatory and/or supervisory structures should take into account the potential of deposit insurers as peer-to-peer regulators, which could play a substantial role in promoting and maintaining financial stability in addition to their main objective as providers of emergency support to depositors of insolvent institutions.
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