A fund mutualised at European level is the most effective tool to protect savers' bank deposits, the European Commission has stated in an assessment submitted to the European legislator.
The Commission tested out three possible scenarios for the creation of the European deposit insurance scheme (EDIS), the third plank of banking union in the eurozone (see EUROPE 11629).
For all the simulations we ran, a mutualised fund "performs better than the mandatory reinsurance and lending schemes,...