Reforming European deposit guarantee arrangements

David Walker, managing director, Policy, Insurance and International Affairs, Canada Deposit Insurance Corporation (CDIC).

Introduction

The international financial crisis of 2007 and 2008 exposed some crucial deficiencies in the European deposit protection arrangements as set out in the 1994 Directive. The recent financial turmoil once again highlighted the importance of deposit protection to contribute to financial stability and reduce the risk of depositor panic as banks experience problems. The crisis concomitantly exposed the cross-border risks in the EU’s integrated financial marketplace.