The deposit guarantee scheme does not expire next September - retail deposits including share accounts will continue to be protected up to 100k.
Brendan, you once said that the limit of 90% max €20k was sufficient - do you still hold this contrarian view?
K
I actually think that there should be no deposit guarantee at all. This would force banks to act more prudently, as potential depositors would look for banks with highest reserves to meet deposits. As a depositor you would have the choice of higher interest for lower reserves (i.e. higher risk) or lower/no interest for high/100% reserves and low risk.
Between deposit gurantees, intervening in bank runs and bailouts, banks have no real threat of actual insolvency/bankruptcy, which is a major moral hazard. No amount of new regulations will change that, and banks will go straight back to their old games.