Yet its design is conceptually appealing, because it puts us in a good position to insure coordination between MIP and MAP at both European and national level.
Such reforms should be implemented in a manner that does not unnecessarily create additional moral hazard and that strengthens, rather than erodes, market discipline. Higher coverage limits, for example, would exacerbate moral hazard problems without apparent and offsetting benefits. The current level of coverage seems adequate to meet the needs of an overwhelming majority of depositors.