On 19 December 2023, the European Banking Authority (EBA) published a report on the deposit coverage level and coverage of public authorities’ deposits, in response to a call for advice by the European Commission.

The report presents the EBA’s analysis of the data collected from 28 EEA countries covering the period between January 2022 and August 2023, and the assessment of the current coverage level, from the perspective of financial stability, consumer protection, impact on moral hazard and costs to the banking sector. It also presents results of the analysis on the potential impact of extending coverage to the deposits held by public authorities, most of which are currently excluded from protection. The EBA is of the view that there is no need to change the current deposit coverage level of EUR 100,000. This conclusion is based on the findings that any of the assessed potential increases in coverage, while being costly, would have a positive but limited impact on financial stability and consumer protection, and a somewhat negative impact on moral hazard.