The financial turbulence, it was feared, could develop into an international financial crisis as severe as the Great Depression in the 1930s. In several jurisdictions, bank customers were reportedly shifting their deposits to the perceived safety of other banks or instruments. Policy makers had no choice but to respond.
Some authorities stated publicly that all bank deposits would be safe or that deposit insurance coverage would be unlimited. Elsewhere, the maximum level of deposit insurance coverage was raised, at least temporarily, or coinsurance arrangements were withdrawn. In some countries without explicit deposit insurance arrangements, these were introduced.