- Deposit insurance schemes — Deposit protection schemes — European Banking Authority (EBA)
The euro’s launch in 1999 accelerated the integration of Europe’s financial markets. Upheavals in the banking sector and debt markets since 2007 have, however, both reinforced (regulatory and supervisory reforms) and halted (government protectionism) this development. The latter ‘renationalization’ process was accentuated by the enormous amounts of state aid that national governments channelled to banks through public loans, capital injections, and guarantees. The European Union consequently faced two equally important and complex challenges—plugging regulatory and supervisory gaps to prevent future crises, while limiting the economic damage of the crisis—which the chapter reviews from a depositor protection perspective. The chapter examines the guiding 1994 Deposit Guarantee Schemes Directive, and identifies relevant regulatory and supervisory reforms that have taken place since 2007, including the 2014 recast Directive and creation of the European Banking Authority. It concludes by offering an overview of the main critiques of these regulatory and supervisory developments.
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