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FDIC Banking Review

Table 2
Bank Closures
Are troubled depository institutions routinely closed and liquidated or otherwise reorganized when equity capital is exhausted? Have there been examples where equity-insolvent, insured depository institutions have been allowed to operate for extended periods?
Deposit Insurer Yes No Yes No
Advanced Economics
Austria (AAR)  

X

 

X

Austria (AABB)  

X

 

X

Belgium  

X

 

X

Canada

X

 

X

 
France

X

   

X

Germany (EdB)

X

   

X

Germany (E)

X

   

X

Greece

X

   

X

Isle of Mana  

X

 

X

Italy (IDPF)

X

   

X

Italy (DPFCB)

X

   

X

Japan

X

 

X

 
Netherlands  

X

 

X

Portugal  

X

   
Spain

X

   

X

Sweden

X

     
Taiwan Province of China  

X

X

 
United Kingdom

X

     
  Subtotal

11 

3

11 

Developing Economies and Economies in Transition
Africa

 

     
  Nigeria

X

 

X

 
  Tanzania

X

 

X

 
  Uganda

X

 

X

 
Europe        
  Czech Republic

X

   

X

  Hungary

X

     
  Latvia  

X

   
  Lithuania

X

 

X

 
  Poland  

X

 

X

  Romania

X

   

X

  Slovak Republic

X

   

X

  Turkey

X

     
Middle East        
  Bahrain

X

   

X

  Oman  

X

 

X

Western Hemisphere        
  Brazil  

X

   
  El Salvador

X

 

X

 
  Jamaica

X

 

X

 
  Mexico  

X

   
  Peru

X

   

X

  Trinidad and Tobago

X

 

X

 
 Subtotal

14

5

7

7

Total

25

12

10

18


Note: Classification of economies into "Advanced," "Developing," or "Economies in Transition" is from International Monetary Fund (2000). Deposit insurers without an "X" in either the Yes or No column did not answer the question on the survey or did not provide an answer that was easily categorized as yes or no.

aBritish Crown Dependency

AAR = Association of Austrian Raiffesenbanks

AABB = Association of Austrian Banks and Bankers

EdB = Entschadigungseinrichtung deutscher banken

E = Einlagensicherungs

IDPF = Interbank Deposit Protection Fund

DPFCB = Deposit Protection Fund for Co-operative Banks

Last Updated 06/20/2002 Questions, Suggestions & Requests