The deposit schemes are national and required to cover the branches of their banks in other countries. Pair a big enough bank with a small enough country and yo

The deposit schemes are national and required to cover the branches of their banks in other countries. Pair a big enough bank with a small enough country and you can easily drown the small country. —- There’s also a credibility problem. When the US stress tested its banks, the ones that passed did not fail. When the EU did it, some of the passing banks ended up needing saving, and this happened multiple times, sometimes even with the same bank.