The Macroeconomic Effects of a European Deposit (Re-)Insurance Scheme

Mon, 01 Jan 2024 00:00:00 +0000

Research question and motivation: The first two pillars of the European Banking Union (single supervision and single resolution) are in place, but the third pillar — a European deposit insurance scheme (EDIS) — is still missing. Recent policy proposals favor a reinsurance design, where European deposit insurance steps in only after national deposit insurance (DI) funds are depleted. The paper asks how well such a deposit reinsurance scheme absorbs macroeconomic and financial shocks relative to alternatives, and quantifies its stabilization, welfare, and moral-hazard implications.

Stefan Gebauer | Macro Paper Warehouse

The Macroeconomic Effects of a European Deposit (Re-)Insurance Scheme