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Chances for Pan-European deposit insurance : what explains national positions to the recast directive on deposit quarantee schemes?

Stahlhut, Annika Maria Petra (2012) Chances for Pan-European deposit insurance : what explains national positions to the recast directive on deposit quarantee schemes?

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Abstract:The financial crisis has demonstrated that integrated capital and financial markets need strong measures on systemic stability to stand confidence-induced break-downs. In view of raising cross-border banking deposit guarantee schemes as means to avoid panic withdrawals have come into sight. European states have therefore encouraged further harmonization on deposit insurance to first, enhance investor confidence for systemic stability and second, ensure fair competition on common markets for capital and banking services. Despite their commitment to align national guarantee schemes further states fail to ratify pan-European deposit insurance. A case study on Austrian, German and Irish positions examines chances for a common scheme. Neofunctionalist and liberal intergovernmentalist assumptions shed light on stagnant integration of deposit insurance from theoretical perspective. The analysis reveals two motives that seem pivotal to national opposition. First, European states fear liquidity risks from merging national funds. Second, they want to maintain sectoral institutions that have proven to be effective and thus trust-building in financial distress. On grounds of sectoral and national differences in deposit protection a pan-European systems seems unlikely to emerge soon.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:89 political science
Programme:European Studies BSc (56627)
Link to this item:http://purl.utwente.nl/essays/61712
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