Each deviation must be approved by a clear majority of the relevant decision-making bodies – in this case, the deposit guarantee scheme and the central bank. The finance minister must sign off a deviation in consultation with the president. This is intended to secure the financing of bank restructurings.
This is a sensible approach to strengthening the credibility of resolution regimes and being capable of acting during systemic crises at the same time. One point is of particular importance to me here: fiscal backstops are not the path towards to greater mutual liability. Fiscal means can only ever be the last resort within a well-defined liability cascade.