Its assets have been nationalised and its retail deposits sold to Spain's Banco Santander.
That means greater emphasis on retail deposits, where liquidity concerns are less acute, rather than wholesale markets.
ECONOMIST: Lenders in America and Britain retrench, but for how long?
Savers may initially be shielded from the full impact of those reductions, because commercial banks are competing for retail deposits.
Providian should gain too: hitching itself to a big lender with lots of cheap retail deposits will cut its borrowing costs.
In the Czech Republic, for instance, it holds almost a third of all retail deposits, and in Romania it has a quarter.
Others, like RBS, had some retail deposits, but notably were very dependent on wholesale (uninsured) funding, and that dependence had grown over time.
FORBES: Vickers, Bank Ring Fencing, Glass Steagall, They're Not the Answer
Retail deposits volume was up only slightly to JPY 68.7 trillion, of which foreign currency deposits accounted for a paltry JPY 0.8 trillion equivalent.
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Secondly, retail deposits (but not pension liabilities) would be ranked ahead of the claims of other bank creditors in the event of a bank insolvency.
They are guaranteeing far more retail deposits than before the crisis.
In the short term, the banks themselves will be very glad of a flood of retail deposits: that will leave them less dependent on jittery wholesale markets.
They could also argue that retail deposits can be as flighty as the wholesale markets: just ask Northern Rock and IndyMac, both of which suffered rapid withdrawals.
At least 75% of banks' total lending will have to be funded with stickier liabilities such as retail deposits and wholesale borrowing maturing in more than a year.
The crisis is intensifying calls for the establishment of some sort of banking union, with centralised powers and funding to regulate and supervise banks as well as to recapitalise ailing ones and to insure retail deposits.
Revenue generated per household was 16 percent higher in the accounts at banks that provided an online brokerage, the survey found, and the revenues generated per million dollars of core retail deposits were 33 percent higher than their peers that did not offer online investment services.
The European Commission's Mr. Barnier also said his group was looking at options for structural changes in the banking sector, including the Volcker rule and the recent Vickers report in the U.K., which recommended ring-fencing, or roping off, bank's domestic retail deposits from the rest of their operations.
So even given the domination of state-controlled Sberbank to which customers fled after the 1998 default and devaluation, and which boasts more than half of all retail deposits, over a quarter of all banking assets and access to cheaper capital than private banks there is enough business to go round.
Although shareholders are likely to lose most, if not all, their investments, retail savers with deposits up to 100, 000 euros are protected.
The 537 Sparkassen (savings banks), mainly owned by municipalities, and the 12 Landesbanken, regional banks owned by state governments and savings-banks associations, account for 39% of domestic retail and corporate deposits and 35% of bank lending.
Yet these complex and illiquid instruments were in some cases marketed as quasi-deposits to retail clients, many of whom also bought shares in Bankia.
The Vickers Report in the UK says that we should have ring fencing, dividing the (government insurance on deposits) retail banks from the investment banks.
FORBES: Vickers, Bank Ring Fencing, Glass Steagall, They're Not the Answer
The only wise recapitalisation just now is an outright purchase, preferably by a retail bank backed by deposits insured by the government as with Bank of America and Merrill Lynch, Lloyds and HBOS and, possibly, Wachovia with Morgan Stanley.
On Wednesday, investors focused on worries about Spain, where deposits have been flowing out of retail and corporate bank accounts.
Many German banks seem to be in this position, as may some investment banks and some universal banks, such as Barclays, that have retail loans in peripheral Europe that exceed their deposits there.
One reason they keep trying is that retail banking the mundane business of taking deposits and making loans has long looked dull.
In aggregate, its retail banks lend out more than they gather in deposits, making them reliant on wholesale funding from the wider financial system.
Through its banking subsidiaries, Whitney engages in commercial and retail banking and in trust business, including the taking of deposits, the making of secured and unsecured loans, the financing of commercial transactions, the issuance of credit cards, the delivery of corporate, pension and personal trust services, investment services and safe deposit rentals.
Public sector and co-operative banks account for the lion's share of the retail market even a Deutsche-Dresdner behemoth would have only a tenth of domestic bank deposits.
Retail investors, desperate to find alternative sources of income in the face of record-low yields on bank deposits, are another source of demand for corporate bonds.
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