Moving towards a Pan-European Deposit Guarantee Scheme: How Bank Riskiness Is Relevant in the Scheme

The recent global financial crisis has highlighted clearly the need for better regulation and supervision of the financial sector. As far as deposits are concerned, savers suddenly realized that different levels and forms of depositor protection co-existed in the EU and following the Northern Rock bank run in September 2007, it was clear that deposit-protection systems in the EU did not function as they should.