Evaluation of European Deposit Insurance Scheme funding based on risk analysis

We carry out a quantitative analysis of the financing measures proposed for European Deposit Insurance Scheme (EDIS) regarding target level fund and contribution scheme member entities. estimate loss distribution EDIS considering different sources systemic risk associated with correlations between bank assets we analyse sensitivity results to portfolio risk. Our findings show how interconnection banks countries has an important influence on accumulated losses in tail distribution. Likewise deterioration quality portfolios produces significant reduction fund's loss-absorbing capacity, which calls into question its soundness times economic recession. Finally, provides more equitable may be appropriate incentive reduce moral hazard Banking Union.