Now, there is an opportunity in the upcoming legislative term to appropriately prioritize the development of the Banking Union. "The ongoing review of crisis management for banks and savings banks (CMDI) should be completed first before meaningful discussions on EDIS can even take place", says Ulrich Reuter, President of the German Savings Banks Association. 

Both associations jointly emphasize the importance of strengthening Europe's future viability through the Banking and Capital Market Union, given the significant economic, geopolitical, and climate challenges of our time. "The Banking Union must not undermine proven, preventive security systems like those of cooperative banks and savings banks, which help prevent crises in affiliated institutions and thus avoid deposit insurance cases altogether", emphasizes Kolak. "Prevention is better than cure," Reuter said.

The strength of the economy in Europe lies in its many small and medium-sized enterprises, whose financing primarily relies on a regionally oriented banking system. "The European Union cannot afford to weaken this powerhouse of its economy if it intends to compete globally", Kolak emphasizes. 

The two financial associations also reject the proposed EDIS scheme because it would separate liability from responsibility, leading institutions and financial service providers to consciously shift risks onto those operating with stable business models in the market. Reuter states, "around 80 percent of private customers in Germany entrust their money to cooperative banks and savings banks. These customers do not want the financial resources accumulated for their security to be used for risk mitigation of international large banks."