Policy Article
Financial Stability in the Euro Area
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Economic & Financial Crises
European Union & Euro
Financial Markets
Monetary Policy
Risks to financial stability in the euro area appear to be contained for the time being, but could be substantial in the longer run. The European financial system is still not crisis-proof. We argue that deposit insurance schemes are not a good option to increase overall financial stability and higher equity ratios for banks are the appropriate approach to make the financial system safer.
