Clifford Chance
Depositor preference in the G20
15 September 2011
The protection of depositors in liquidation is an area of bank reform that has attracted increasing interest. For example,
the Final Report of the UK Independent Commission on Banking proposes amendments to the creditor hierarchy making (at least some) deposits
rank senior to other unsecured claims and claims secured by floating charges in liquidation. Similarly, the Financial Stability Board's
consultation on Effective Resolution of Systemically Important Financial Institutions sought comment on whether or not different treatments
of depositors in liquidation across different jurisdictions is an obstacle to effective resolution of a systemically important financial institution.
Clifford Chance has conducted a survey of G20 countries to establish which countries have an existing regime for preferring depositors in
liquidation (either directly or by other means, the effect of which is to subordinate other senior creditors of the bank).
