In Europe, though, they’ve just decided that they’re -not really- going to insure deposits at full value after all (see the article in its original German here)
Now, if a bank goes under, governments will make very, very basic payments to depositors, and restrict withdrawals to just 100-200 euros per day.
There’s a term for this. It’s called capital controls. And it’s something that almost every bankrupt government in history has resorted to using.
Capital controls are essentially a restriction on the free-flow of capital. It can take a number of different forms– gold criminalization, bank account confiscation, foreign exchange restrictions, etc.
But at the end of the day, the effect is the same - capital controls are just another way of transferring wealth from citizens to the government, like dairy cows to a farmer.