It is to this end that the ECB, on the eve of becoming the single supervisor for the euro area, together with all the national supervisory authorities, launched a year ago the recently completed comprehensive assessment of the 130 most significant European banks. Another obstacle has thus been removed to the contribution that the ECB’s monetary policy can make to reviving growth.
That the issue of funding is so relevant to the credibility of the deposit insurance system is highlighted by the unprecedented decision this year by the Iceland Government to hold a referendum to approve or reject the terms of a state guarantee on the debts of the Depositors' and Investors' Guarantee Fund, in particular a loan from the governments of the United Kingdom and the Netherlands to cover deposit insurance obligations in those countries.