A European Deposit Insurance and Resolution Fund
The eurozone is caught in a ‘diabolical loop’ in which weak domestic banking systems damage sovereign fiscal positions and conversely, in which risky sovereign positions disproportionately threaten domestic banking stability. A European-level banking system could go a long way towards breaking this unfortunate loop and stabilising the eurozone. This would require a European safety net for cross-border banks. This paper sketches the building blocks of a European Deposit Insurance Fund. We calculate that such a Fund would amount to €55 billion for the 35 largest European banks. This Fund could be created over ten years through risk-based deposit insurance premiums levied on the top 35 banks. Once fully up and running, the Fund could also deal with the resolution of one or more of these 35 banks. The Fund would then be turned into a European Deposit Insurance and Resolution Fund. The paper aims to promote debate among policy-makers, industry and academia.
|Date of creation:||May 2012|
|Contact details of provider:|| Postal: Place du Congrès, B-1000 Bruxelles|
Phone: (+322) 229-39-11
Fax: (+322) 229-39-71
Web page: http://www.ceps.eu
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Keynote Speech by Maurice Obstfeld, 2011.
"International Liquidity: The Fiscal Dimension,"
Monetary and Economic Studies,
Institute for Monetary and Economic Studies, Bank of Japan, vol. 29, pages 33-48, November.
- Repullo, R., 1999.
"Who Should Act as Lender of Last Resort? An Incomplete Contracts Model,"
9913, Centro de Estudios Monetarios Y Financieros-.
- Rafael Repullo, 2000. "Who should act as lender of last resort? an incomplete contracts model," Proceedings, Federal Reserve Bank of Cleveland, pages 580-610.
- Repullo, Rafael, 2000. "Who Should Act as Lender of Last Resort? An Incomplete Contracts Model," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 32(3), pages 580-605, August.
- María J. Nieto & Larry D. Wall, 2006. "Preconditions for a successful implementation of supervisors' prompt corrective action: Is there a case for a banking standard in the European Union?," FRB Atlanta Working Paper 2006-27, Federal Reserve Bank of Atlanta.
- Benedicta Marzinotto & André Sapir & Guntram B. Wolff, 2011.
"What kind of fiscal union?,"
- repec:cup:cbooks:9781107025943 is not listed on IDEAS
- Dirk Schoenmaker, 2011.
"The Financial Trilemma,"
Tinbergen Institute Discussion Papers
11-019/2/DSF 7, Tinbergen Institute.
- Gerhardt, Maria & Lannoo, Karel, 2011. "Options for reforming deposit protection schemes in the EU," ECRI Papers 4339, Centre for European Policy Studies.
- Charles Goodhart & Dirk Schoenmaker, 2009. "Fiscal Burden Sharing in Cross-Border Banking Crises," International Journal of Central Banking, International Journal of Central Banking, vol. 5(1), pages 141-165, March.
- de Haan,Jakob & Oosterloo,Sander & Schoenmaker,Dirk, 2012.
"Financial Markets and Institutions,"
Cambridge University Press, number 9781107635920, December.
- de Haan,Jakob & Oosterloo,Sander & Schoenmaker,Dirk, 2015. "Financial Markets and Institutions," Cambridge Books, Cambridge University Press, number 9781107539365, December.
- de Haan,Jakob & Oosterloo,Sander & Schoenmaker,Dirk, 2015. "Financial Markets and Institutions," Cambridge Books, Cambridge University Press, number 9781107119994, December.
- Hertig Gerard & Lee Ruben & McCahery Joseph A., 2010. "Empowering the ECB to Supervise Banks: A Choice-Based Approach," European Company and Financial Law Review, De Gruyter, vol. 7(2), pages 171-215, January.
- Jean Dermine, 2000. "Bank Mergers in Europe: The Public Policy Issues," Journal of Common Market Studies, Wiley Blackwell, vol. 38(3), pages 409-425, 09.
When requesting a correction, please mention this item's handle: RePEc:eps:cepswp:6918. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Margarita Minkova)
If references are entirely missing, you can add them using this form.