Kemmer on the current discussion about an EU deposit guarantee
Michael Kemmer, General Manager of the Association of German Banks, on the current discussion about an EU deposit guarantee without the involvement of savings banks and cooperative banks.
“Current efforts by the European Commission to set up a common deposit guarantee scheme as the third element of banking union are far too premature, in our view. A number of member states are only now in the process of implementing the EU Deposit Guarantee Directive in national law. Implementation should have been complete by 3 July 2015, but to date only 14 of the 28 EU member states have put the necessary measures in place.
What is more, it must be quite clear in all future discussions about a European deposit guarantee that any such scheme has to apply to all banks – including savings banks and cooperative banks. A mutualisation of European bank risks with implications in Germany for only one of the three pillars of the banking sector is something we will not accept and will fiercely oppose.”