The temporary increase in FDIC deposit insurance coverage should reinforce these effects by further strengthening public confidence and providing additional liquidity to FDIC-insured institutions. Importantly, some of these policy actions will also directly benefit small businesses.
In the following years, as the crisis had not abated, European firewalls for the euro area members, the ESFS and its permanent successor institution, the ESM, were established and their firepower was substantially increased in order to address the challenges arising from the banking and sovereign debt crises.