Independent Insight Provider

Stewart Paterson

Macroeconomics

<p>It did not get much media attention but the ECB is once again reviewing their system of guaranteeing bank deposits. It appears some bright spark has pointed out that in the event of a bank failure, the fact that the first Euro 100K of your deposit is guaranteed, and thus not available to be bailed in, might not be enough solace to prevent a run on the bank. The BoE helpfully suggests that savers may wish to split their bank deposits among different banks that qualify for the guarantee. Some wag…</p>

It did not get much media attention but the ECB is once again reviewing their system of guaranteeing bank deposits. It appears some bright spark has pointed out that in the event of a bank failure, the fact that the first Euro 100K of your deposit is guaranteed, and thus not available to be bailed in, might not be enough solace to prevent a run on the bank. The BoE helpfully suggests that savers may wish to split their bank deposits among different banks that qualify for the guarantee. Some wag…

Money Matters: If Gold Is Money It Is Undervalued.