Resolution Powers Over E-Money Providers

20 Pages Posted: 19 Jul 2017 Last revised: 13 Jul 2018

See all articles by Katharine Kemp

Katharine Kemp

University of New South Wales (UNSW) - Faculty of Law

Ross P. Buckley

University of New South Wales (UNSW) - Faculty of Law

Date Written: July 1, 2017

Abstract

E-money has grown dramatically in a number of countries of late, often driven by non-bank providers of e-money, particularly telecommunications companies. Many countries have regulated the issuance of e-money, but in times of trouble there is usually a discrepancy in the treatment of bank and non-bank issuers. When a bank experiences financial distress, legislation normally grants an authority resolution powers to ensure an orderly winding up while limiting systemic disruption and losses to deposit holders. These resolution powers do not usually extend to non-bank e-money providers, notwithstanding the potential disruption the collapse of a large provider could now cause in some countries. This paper proposes three approaches, legislative and non-legislative, to granting resolution powers in respect of e-money providers to limit losses and preserve systemic stability.

Keywords: e-money, resolution powers, bank and non-bank issuers, telecommunications companies, collapse large providers, banks, financial distress, winding up, e-money regulation, emoney, telco, developing countries

Suggested Citation

Kemp, Katharine and Buckley, Ross P., Resolution Powers Over E-Money Providers (July 1, 2017). UNSW Law Research Paper No. 17-49. Available at SSRN: https://ssrn.com/abstract=3002927 or http://dx.doi.org/10.2139/ssrn.3002927

Katharine Kemp

University of New South Wales (UNSW) - Faculty of Law ( email )

Kensington, New South Wales 2052
Australia

Ross P. Buckley (Contact Author)

University of New South Wales (UNSW) - Faculty of Law ( email )

Sydney, New South Wales 2052
Australia

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