Published : 2024-02-19

A pan-European deposit guarantee system – part I (lessons from the crisis)

Paweł Smaga



Abstract

In the paper the author analyzes the functioning of deposit guarantee schemes in EU countries during the financial crisis. It turns out that the hitherto fragmented net of unharmonized national DGSs has many flaws and has resulted in suboptimal, uncoordinated cooperation during the crisis. Such a solution fails to contribute to financial stability on the EU-level. One solution includes creating a pan-European DGS, as a third pillar of the banking union. A single DGS has potentially numerous advantages over a net of national DGSs. However, its construction has to be gradual and the base on increased harmonization of national DGSs.

Keywords:

banking union, deposit guarantee scheme, financial crisis



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Smaga, P. (2024). A pan-European deposit guarantee system – part I (lessons from the crisis). Safe Bank, 51–71. Retrieved from https://ojs.bfg.pl/index.php/bb/article/view/403

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