The RQFII quotas enable financial institutions such as asset manager to invest a maximum of just over € billion in mainland China. The transactions can be settled via the clearing bank in Frankfurt. 3.2  Challenges  However, surveys among market participants indicate that investors still have some reservations about investing in renminbi.
Second, national deposit insurance funds would be depleted more quickly than a larger and diversified European fund, in particular in the case of a local shock. Continuing to rely on national schemes could exacerbate the bank-sovereign doom loop, given that public finances might be used to backstop national funds.