But in reality, the role of deposit protection, as of CfDs, is not just to mitigate retroactively actual losses or revenue shortfalls incurred. It is as much, if not more, to provide, a priori, confidence in the existence of an eventual (strictly as necessary) safety net, this confidence being required to summon the relevant actors – depositors in the first hand, renewables generators in the latter – to even participate in the relevant market.
