Expert warns €100,000 deposit insurance too low in current banking turmoil

Lucrezia Reichlin, professor of economics at the London Business School, predicts "other banking crises to happen" if interest rates continue to rise.

The International Monetary Fund headquarters in Washington.

A leading banking expert has told the International Monetary Fund that the €100,000 guarantee on bank deposits in the European Union is set at too low a level, given the current banking turmoil.

In an interview for an IMF blog, Lucrezia Reichlin, professor of economics at the London Business School, also warned there were issues with the powers of global regulators to deal with the collapse of Silicon Valley Bank and other lenders in the US, and to the forced sale of troubled Credit Suisse to UBS in Europe.