Building a Stable European Deposit Insurance Scheme

Author (Person)	Schoenmaker, Dirk
Publisher	Oxford University Press
Series Title	Journal of Financial Regulation
Series Details	Volume 4, Number 2, Pages 314–320
Publication Date	September 2018
Content Type	Journal Article
	Abstract: Deposit insurance, like any insurance scheme, raises moral hazard concerns. Such concerns arising from European deposit insurance can be alleviated through a country-specific component in the risk-based premium for deposit insurance and limits on sovereign bond exposures on bank balance sheets. This article, which forms part of the Euro Area Reform debate, argues, however, that proposals to maintain national compartments in a new European Deposit Insurance Scheme are self-defeating, as such compartments can be destabilizing in times of crisis.
Source Link	Primary Source https://doi.org/10.1093/jfr/fjy004
Subject Categories	Economic and Financial Affairs
Subject Tags	Banking Union, Economic and Monetary Union [EMU], Economic Governance | Situation
Keywords	Banks | Banking, European Deposit Insurance Scheme (EDIS)
International Organisations	European Union [EU]
Record URL	https://www.europeansources.info/record/?p=520093