State aid to banks
Einde inhoudsopgave
State aid to banks (IVOR nr. 109) 2018/3.3.1:3.3.1 Guarantees
State aid to banks (IVOR nr. 109) 2018/3.3.1
3.3.1 Guarantees
Documentgegevens:
mr. drs. R.E. van Lambalgen, datum 01-12-2017
- Datum
01-12-2017
- Auteur
mr. drs. R.E. van Lambalgen
- JCDI
JCDI:ADS585851:1
- Vakgebied(en)
Financieel recht / Europees financieel recht
Mededingingsrecht / EU-mededingingsrecht
Toon alle voetnoten
Voetnoten
Voetnoten
A guarantee can be given ad hoc or in the context of a scheme. Under a guarantee scheme, (eligible) banks usually have the option to enter into an agreement with the State, which in turn would guarantee the banks’ new issuance of debt instruments in exchange for a fee.
Deze functie is alleen te gebruiken als je bent ingelogd.
Banks need funding. For an ailing bank, it may be difficult to attract new funding, because an ailing bank is not an attractive investment for many investors. During the financial crisis, even healthy banks faced difficulties in attracting new funding. A guarantee (scheme1) can help overcome this problem, because a guarantee (scheme) provides a safety net to investors. In this way, a guarantee (scheme) can contribute to the revival of the interbank lending market and of the financial markets in general. A guarantee (scheme) thus allows the beneficiary banks to refinance themselves.