Advertisement
Published in:
2017 | OriginalPaper | Chapter
5. Optimized Funding
Author : Djurdjica Ognjenovic
Published in: Deposit Insurance Schemes
Publisher: Springer International Publishing
Activate our intelligent search to find suitable subject content or patents.
Select sections of text to find matching patents with Artificial Intelligence. powered by
Select sections of text to find additional relevant content using AI-assisted search. powered by
Abstract
Optimized funding enables deposit insurers to establish an adequately funded ex ante DIF over a medium and longer time frame using regular adjustment of target funding in accordance to the DIS’s risk exposure and thus regular adjustment of the DIS funding to its needs. Deposit insurers use financial planning, target funding and risk assessment in iterations of a comprehensive financial planning cycle to ensure optimized funding.
This chapter explains optimized funding and the use of established target funding for the purpose of assessing the sufficiency of DIFs. It explores cases when the DIS faces liquidity and solvency issues due to the DIF’s inadequacy. It explains how to assess the sufficiency of funding for restoring liquidity and solvency and build long-term DIS credibility.