"We have to avoid disincentives in Europe," says BVR president Uwe Fröhlich. Just about half of all the countries had implemented the EU Deposit Guarantee Directive, even though the deadline was July 2015. "New proposals surely unleash no motivation to set up systems in those countries that have yet to do so." Moreover, communitising deposit protection was no substitute for developing the euro zone further.
"Savers have great trust in the security of their deposits. For they know that the accumulated security funds are available for their bank, should the need arise. Therefore, we oppose the transferring of these funds to other countries," says Georg Fahrenschon, the DSGV President. "Most of the people in Germany feel more secure with the current deposit protection than with a European solution. A new discussion about deposit protection would arouse renewed mistrust among savers." Possible crises have to be limited to a particular region and not allowed to impact other security systems via a redistribution mechanism.
In their joint statement BVR and DSGV categorically reject all forms of communitisation of deposit protection. This also goes for re-insurance arrangements which would entail cross-border liability obligations without reasonable opportunities for risk control. That would be a further, undesirable step towards an uncontrolled transfer union.
The EU lawmakers have integrated deposit protection in the banking union and laid down harmonised minimum standards for all EU states. For the first time, many countries are now required to install their own deposit protection systems guaranteeing protection for deposits of up to 100,000 euros. In the past, each individual member state was responsible for setting up and expanding its protection system.