I would be cautious about depositing large amounts into banks guaranteed by small countries with a big banking industry. Why? Because the potential shortfall the small country’s govt has to make up if a lot of the banks topple could be more than their citizens are prepared to actually pay.
It’s all very well for a govt to say that it guarantees everything, but if things go really bad and the bill is for 5 years of the country’s income, it ain’t all going to get paid. People aren’t going to go from big screen TVs and vacations in the Galapagos to pulling roots from the ground for dinner to keep their banks’ creditors whole.
