April 9, 2018 - This Policy Brief was prepared by Dirk Schoenmaker Bruegel Rotterdam School of Management, Erasmus University. A key function of deposit insurance is to provide a credible safety net for depositors, which is beyond doubt, also in times of crisis. At the same time, deposit insurance, like any insurance scheme, raises moral hazard concerns. When depositors are protected by a supranational deposit insurance scheme, participating countries may be less strict with national banking policies.
Click HERE to view the Policy Brief or download a PDF version below.