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Taxes, banks and financial stability

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  • Gropp, Reint E.

Abstract

In this note, a new concept for a European deposit guarantee scheme is proposed, which takes account of the strong political reservations against a mutualization of the liability for bank deposits. The three-stage model for deposit insurance outlined in the text builds on existing national deposit guarantee schemes, offering loss compensation on a European level and at the same time preventing excessive risk and moral hazard taking by individual banks.

Suggested Citation

  • Gropp, Reint E., 2013. "Taxes, banks and financial stability," SAFE White Paper Series 6, Leibniz Institute for Financial Research SAFE.
    • Handle: RePEc:zbw:safewh:6
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    References listed on IDEAS

    as
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    Keywords

    bank risk; banking union; deposit insurance;
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