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Should depositors pay to protect taxpayers from a bank run?

The Rudd government proposed a bank deposit levy and the bank runs in the US and Switzerland has revived questions about Australia’s government guarantee of $1.2 trillion of deposits and who should pay.

John Kehoe
John KehoeEconomics editor

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The protection of depositors during bank runs in the United States and Switzerland has revived questions about Australia’s government guarantee of $1.2 trillion of deposits and who should pay for the insurance.

Deposit accounts worth up to $250,000 at authorised deposit-taking institutions are insured by the government in the unlikely event of a bank collapse.

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John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com

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