A timely moment for the European deposit insurance scheme

Modern deposit insurance serves a critical role in the economy: to maintain trust in the banking system by guaranteeing that ordinary depositors will not lose their savings in the event of bank failure. Preventing “bank runs”, or mass withdrawals driven by panic, is closely linked to the imperative of financial stability. Yet deposit insurance is a highly visible, consumer-facing element of banking law. In principle, this visibility creates space for...Read full article