- The proposals laid out on November 24, 2015 by the European Commission for the progressive expansion of European deposit protection up to 2024 pose a risk to German savers, warns the Bundesverband der Deutschen Volksbanken und Raiffeisenbanken (BVR) [National Association of German Cooperative Banks]. "Ultimately, the proposals mean a misappropriation of the safety buffer created for savers in Germany and a reduction in consumer protection. It is not right that German savers are made jointly liable for protecting the high-risk business policies of banks in Europe. This would achieve precisely the opposite of what was supposed to be established by banking union: stability and confidence in the markets," said the President of the BVR, Uwe Fröhlich.
"We firmly believe that only deposit insurance schemes that adhere to the principle of unity of liability and control can make a lasting contribution to stability," stated Fröhlich. The three pillars of banking union, he added, had already been implemented by the EU Deposit Guarantee Schemes Directive, which came into force back in July 2015 and puts all national protection schemes on a consistent footing. The aim now needs to be for the many member states to set up their protection schemes without further delay, in accordance with the directive from July 2015. Mutualization of the systems, or 'reinsurance', is not necessary, he concluded.
The BVR fully supports the criticism expressed by the German Bundestag, the German government, Deutsche Bundesbank, and the German Council of Economic Experts regarding the plans to mutualize the deposit guarantee schemes in the European Union.