BIS’s Restoy warns of limits to deposit insurance reform

Fernando Restoy
Fernando Restoy
Daniel Hinge

Deposit insurance may need reform to better promote financial stability, but there are many potential drawbacks, Fernando Restoy said on May 25.

Restoy, who heads the Financial Stability Institute at the Bank for International Settlements, said bank runs could start happening more frequently and faster. It was “reasonable to consider reforms aimed at further protecting the stability of the financial system in these new circumstances”, Restoy told a conference in Budapest.

The BIS official

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