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There's no reinsurance, and the rules only ensure that there will be enough funding to cope with a single "medium-sized bank failure" ... by 2020.
by caf 14y ago
There's no reinsurance, and the rules only ensure that there will be enough funding to cope with a single "medium-sized bank failure" ... by 2020.
- justincormack 14y agoIndeed and most countries don't have medium sized banks, they tend to have big ("too big to fail") and small ones. When a bank failed in the Netherlands (SNS Reaal) the other week the government said that it would have cost EUR 30bn to the fund which would have crippled the 3 remaining large banks. Iceland had a similar system where the deposit insurance fund could not cover any of the banks failing, as they were all too big. The two big banks in Cyprus are huge.