EU Guarantee Schemes: Status Quo and Policy Implications

Journal of Banking Regulation, Vol. 16, issue 3

Posted: 29 Jun 2014 Last revised: 2 Jul 2015

See all articles by Malgorzata Iwanicz-Drozdowska

Malgorzata Iwanicz-Drozdowska

Warsaw School of Economics, Institute of Finance

Jakub Kerlin

Warsaw School of Economics (SGH)

Paweł Smaga

Warsaw School of Economics (SGH) - Department of Finance and Management; National Bank of Poland

Marta Tomasik

Independent

Date Written: July 1, 2015

Abstract

This study aims to assess the current institutional arrangements of guarantee schemes in three sectors of the financial services industry (banking, insurance and capital market) in EU countries. Using data collected directly from guarantee schemes and other sources, as well as bank balance sheet data, the research focuses on assessing the financial capacity of the guarantee schemes. The analysis is supported by the illustration of the consequences of a hypothetical failure of global systemically important bank (G-SIB) in the EU and separately in EU countries from Central and Eastern Europe. This is to prove that setting up a pan-European deposit guarantee scheme for banks in the banking union would create a significant financial burden for the European economy. The research points out some policy implications of how to deal with this issue.

Keywords: guarantee schemes, financial capacity, G-SIB, banking union

JEL Classification: G21, G23, G28

Suggested Citation

Iwanicz-Drozdowska, Malgorzata and Kerlin, Jakub and Smaga, Paweł and Tomasik, Marta, EU Guarantee Schemes: Status Quo and Policy Implications (July 1, 2015). Journal of Banking Regulation, Vol. 16, issue 3, Available at SSRN: https://ssrn.com/abstract=2460125 or http://dx.doi.org/10.2139/ssrn.2460125

Malgorzata Iwanicz-Drozdowska (Contact Author)

Warsaw School of Economics, Institute of Finance ( email )

Warsaw
Poland

Jakub Kerlin

Warsaw School of Economics (SGH) ( email )

Niepodleglosci 162
Warsaw, 02-554
Poland

Paweł Smaga

Warsaw School of Economics (SGH) - Department of Finance and Management ( email )

Warsaw
Poland

National Bank of Poland ( email )

Poland

Marta Tomasik

Independent ( email )

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