From a public policy perspective, the government's goal to ensure the stability of the financial system should be of paramount importance. The failure of any bank, no matter how small, may lead to loss of confidence in the system, unless the government can demonstrate its ability to handle bank crises in an orderly and systematic fashion.
F rom the point of view of the saver, stability of financial markets is equally important.
With bank failures, the danger of losing at least part of savings balances becomes a real one. Loss of deposits hurts. The affected saver's distress is obvious, particularly if there is no safety net which would provide reimbursement. Safeguarding Deposits is to present evidence on different aspects of safety of deposits in times of financial crisis and on measures to rehabilitate ailing financia institutions. The video is available with English or French narration and can be provided while stocks last.