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Deposit insurance Iceland
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Deposit insurance
in Iceland is handled by Depositors' and Investors'
Guarantee Fund (Tryggingarsjóður) and covers a minimum of 20
887 euros.However, the fund was drastically
insufficient to cover the bank failures of the 2008–2010
Icelandic financial crisis, particularly Icesave. This case
shows the limits of deposit insurance in protecting against
systemic failure (as opposed to the collapse of a single
bank or other institution).
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