The European Commission proposed on Wednesday to set up a European guarantee for bank deposits that will be based on a reinsurance system for national schemes.
EU states are already obliged to protect bank deposits up to 100,000 euros, but with several credit institutions underperforming and excessive interlinks between government debt and banks holding most of it, this guarantee may not be enough in some states.
A European Deposit Insurance Scheme "will ensure that citizens can be certain of the safety of their deposits independent of their geographical location," the Commission said in a statement.
The reinsurance system will guarantee national deposit protection schemes and will have safeguards to avoid moral hazard, the Commission said, adding it would set out details in a legislative proposal before the end of the year.
Insure-Digest
EU states are already obliged to protect bank deposits up to 100,000 euros, but with several credit institutions underperforming and excessive interlinks between government debt and banks holding most of it, this guarantee may not be enough in some states.
A European Deposit Insurance Scheme "will ensure that citizens can be certain of the safety of their deposits independent of their geographical location," the Commission said in a statement.
The reinsurance system will guarantee national deposit protection schemes and will have safeguards to avoid moral hazard, the Commission said, adding it would set out details in a legislative proposal before the end of the year.
Insure-Digest
