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Deposit Guarantee Schemes

In: Deposit Guarantee Schemes: A European Perspective

Author

Listed:
  • Francesca Arnaboldi

    (University of Milan)

Abstract

This chapter reviews the current system of deposit guarantee schemes in the EU and in the US, documenting the recent changes in legislation. Deposit guarantee schemes reimburse a defined amount of deposits to depositors whose bank has failed. From the depositors’ point of view, deposit guarantee schemes protect a part of their financial portfolio from bank failure. From a financial stability perspective, the schemes prevent bank runs, thus preventing severe economic and social consequences. This chapter, then, investigates the design of deposit guarantee schemes in the 28 member states. The last section is devoted to the insurance of deposits in the US.

Suggested Citation

  • Francesca Arnaboldi, 2014. "Deposit Guarantee Schemes," Palgrave Macmillan Books, in: Deposit Guarantee Schemes: A European Perspective, chapter 3, pages 50-85, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-1-137-39087-5_4
    DOI: 10.1057/9781137390875_4
    as

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