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as mentioned in the video about bank runs deposit guarantees are used to maintain confidence in the banking system in the United States for example the Federal Deposit Insurance Corporation was created back in 1933 to restore peoples confidence and banks after the Great Depression it still exists and insures deposits of up to two hundred and fifty thousand dollars per person per Bank so if someone wants to keep 1 million dollars insured he can create $250,000 deposits at four different banks the same principle is valid elsewhere in the world the European Union requires all Member States to have a Deposit Guarantee mechanism since 1994 but lets them decide how much money theyre willing to guarantee after the crisis of o7 and o8 EU countries increase those amounts in most cases to a hundred thousand euro so are these guarantees foolproof definitely not the u.s. since it prints its own currency is in a good position to bail out depositors without too much bureaucracy you could say depo
