The Financial Stability Board (“FSB”) has published a Peer Review Report on deposit insurance schemes (“DIS”). The report points to the trade-off between financial stability and market discipline, and warns about the dangers of moral hazard. Deposit insurance is seen as beneficial for financial stability, because depositors are less likely to start a run on a bank in the knowledge that their deposits are insured. However, if such insurance is unlimited, then it may incentivise excessive risk-taking. The FSB noted in particular that there are some Canadian, German and Swiss institutions which appears to be covered by unlimited deposit insurance schemes, and the report suggests that national authorities should “consider adopting compensatory measures” in order to avoid having such schemes in place. However, the report states that many DIS schemes are currently “broadly consistent” with the Basel Committee’s Core Principles for Effective Deposit Insurance Systems.