Institutional protection scheme

Not to be confused with Institutional Protection Service.

An institutional protection scheme (IPS) is an arrangement defined under European Union law since 2013 by the Capital Requirements Regulation, involving a form of mutual liability among several banks and financial institutions, under which each participating entity is protected from insolvency by the financial resources of the other participants. Institutional protection schemes have been described as "virtual groups" of banks.[1] They are particularly prominent in Austria and Germany, and also exist in Italy, Poland and Spain.[2]: 12 

  1. ^ Sabine Lautenschläger (30 September 2014). "National supervision in a European system: What is the new balance? Speech at the Fifth FMA supervisory conference, Vienna". European Central Bank.
  2. ^ Cite error: The named reference Huizinga was invoked but never defined (see the help page).