Institutional protection scheme
Mutual liability arrangement in European banking / From Wikipedia, the free encyclopedia
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]:ā12ā