The Commission services has published a paper that analyses the effects of three options for the establishment of deposit insurance within the EU Banking Union. The options considered are a mandatory reinsurance model, a mandatory lending model and a fully mutualised fund. In addition, the paper analyses the effects of different options on a number of more specific issues in the design of the European Deposit Insurance Scheme (EDIS).

In order to facilitate progress in the negotiations on the EDIS proposal, the European Commission committed to the Council of the EU and the European Parliament to prepare an “effects analysis” by October 2016. The effects analysis, which is presented in the Commission services non-paper, comprises the following elements:

• an outline of the existing framework for national deposit guarantee schemes in the EU;
• the effects of the proposed EDIS proposal compared to alternative policy options; and
• the interaction between national options and discretions under the Deposit Guarantee Scheme Directive and the EDIS.

View Commission effect analysis on European deposit insurance scheme, 11 October 2016