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BackOn Tuesday, the Committee on Economic and Monetary Affairs of the European Parliament has agreed the report on the Directive proposal on Deposit Guarantee Schemes. Private savings deposits are to be guaranteed up to Euro 100,000 EU-wide. The Social Democrat rapporteur Peter Simon stated that this legislative change would be necessary to ensure that banks would take appropriate measures to secure these deposits and would not rely on the state to foot the bill in case of crisis.
According to the report of the Economic Committee, in future, banks will have to pay 1.5 % of all protected deposits in advance into a fund. These should be composed of at least 90 % cash deposits and maximal 10 % of low-risk assets. The fund shall be filled over the next 15 years.
The current national guarantee schemes systems can stay in place whilst the proposal of the European Commission had demanded a far stronger harmonisation of the systems. The report of the Economic Committee gives the states more scope to structure their deposit guarantee schemes, whilst the protection for all European deposits is guaranteed. Banks with higher risks have to contribute up to 2.5 times more to the deposit guarantee than those with lower risks. The risks of the banks shall be ascertained by the European Banking Authority (EBA).
From 2016, banks have to pay deposits of up to Euro 100.000 Euro to account holders or savers within five days. That way, savings deposits are protected EU-wide in case of bank insolvencies. Up to 2016, at least Euro 5,000 shall be paid within five days; the remainder in accordance with the provisions of the Member State within maximal 20 days.
The next step are negotiations of the Parliament with the Member States. The vote in the plenum is planned for autumn 2011.
Further information:
Press release of the Committee on Economic and Monetary Affairs: Deposit guarantee schemes: €100,000 for all through different types of systems
The current national guarantee schemes systems can stay in place whilst the proposal of the European Commission had demanded a far stronger harmonisation of the systems. The report of the Economic Committee gives the states more scope to structure their deposit guarantee schemes, whilst the protection for all European deposits is guaranteed. Banks with higher risks have to contribute up to 2.5 times more to the deposit guarantee than those with lower risks. The risks of the banks shall be ascertained by the European Banking Authority (EBA).
From 2016, banks have to pay deposits of up to Euro 100.000 Euro to account holders or savers within five days. That way, savings deposits are protected EU-wide in case of bank insolvencies. Up to 2016, at least Euro 5,000 shall be paid within five days; the remainder in accordance with the provisions of the Member State within maximal 20 days.
The next step are negotiations of the Parliament with the Member States. The vote in the plenum is planned for autumn 2011.
Further information:
Press release of the Committee on Economic and Monetary Affairs: Deposit guarantee schemes: €100,000 for all through different types of systems