01 Nov 2010

Proposals for reforming deposit guarantee schemes in Europe

Rym Ayadi / Rosa M Lastra


This article explores the limitations of the provision of deposit insurance in the European Union and assesses the revisions to the Directive on deposit guarantee schemes, as well as the need for further reform in the light of the financial crisis. The authors endorse a move towards a more effective European-wide institutional arrangement in line with a move towards a greater degree of pan-European supervision. The design of this aspect of the safety net should be consistent with the needs of a single market in financial services and aligned with other initiatives in the field of financial crisis management and resolution.