Deposit Insurance in the Aftermath of Recent Bank Failures
Asian Institute of International Financial Law
Faculty of Law, The University of Hong Kong
&
Hong Kong Commercial and Maritime Law Centre
School of Law, City University of Hong Kong
Deposit Insurance in the Aftermath of Recent Bank Failures
16 November 2023
The recent failures of Silicon Valley Bank (SVB), First Republic Bank (FRB) and Signature Bank have placed deposit insurance schemes and their limitations under the spotlight. This presentation considers deposit insurance schemes in major jurisdictions, and explores some risk mitigation steps that multinational corporations can take to better protect their large bank deposits. Recent bank failures have also prompted financial regulators to consider whether existing deposit insurance schemes are fit for purpose. This presentation explores three potential options for reforming the US deposit insurance scheme proposed by the US Federal Deposit Insurance Corporation (FDIC): (1) limited coverage; (2) unlimited coverage; and (3) targeted coverage. Any reforms resulting from the FDIC’s proposals will not only be significant for the US financial system, but for the entire global financial system, because many deposit insurance schemes around the world are modelled on the US scheme.
About the Speaker
Andrew Fei is a partner at King & Wood Mallesons. He has over a decade of experience in the areas of financial regulation, structured finance, derivatives, syndicated loans, capital markets and securitisation. Andrew has been quoted as an expert on various banking and finance matters in the international press, including the Financial Times, New York Times, International Financial Law Review, IFR Asia, Risk Magazine and Radio Television Hong Kong. Andrew holds a master of laws degree from Harvard Law School and a double 1st class honours bachelor of laws degree from Cambridge University (where he ranked 2nd out of a class of 236 in the Part IB Law Tripos and received the Erskine Chambers Prize for the highest grade in company law). Andrew was named as a “Rising Star Partner” in Capital markets: Structured finance and securitisation by IFLR1000 in 2023.
Commentator
Dr Mark Hsiao, Associate Professor, School of Law, City University of Hong Kong
Chair
Dr Hui Jing, Faculty of Law, The University of Hong Kong
Enquiries: Flora Leung at aiiflhku@hku.hk