The German economy, with its many powerful SMEs and family-run companies relies on lending by banks. Maximum trust in deposit guarantee funds is crucial to enable savings to be converted into loans for SMEs. Only when savers are confident that their deposits are absolutely safe, can this capital be relied upon for funding purposes over the long term. However, the European Commission is planning to merge the autonomous deposit guarantee funds in the eurozone into a single European Deposit Insurance Scheme (EDIS). The German business community believes that this will put long-term economic stability at risk.
Accumulating funds to safeguard customer deposits is part of the contract between a bank and its customers. If these funds are misappropriated by a centralized European deposit insurance scheme in order to help banks in another country, the credit standing of banks may be seriously impaired. A transfer union of this kind would interfere with the contractual relationship between customer and bank and undermine depositors' trust.
The German business community opposes the export of potential uncertainties on the part of savers from one European Union country to another –- even the impression of doing so should be avoided, by making all deposit guarantee systems in Europe autonomous. For decades, the institutional protection schemes run by the Savings Banks Finance Group and the Volksbanken Raiffeisenbanken Cooperative Financial Network, and the private banks' voluntary deposit insurance system have provided reliable protection for savers' deposits in Germany. Centralized deposit insurance would affect the deposit guarantee funds of all the eurozone members, i.e. a total of 19 EU countries. Although banking union requires uniform European standards for deposit protection, which have long since been decided but have not yet been implemented everywhere, banking union does not need a mutualized deposit guarantee fund. A single banking market has existed in Germany for many years, without the need for a single German deposit guarantee.
Moreover, despite unified banking supervision and a standard settlement resolution mechanismsystem, there are still substantial differences between the banking systems of the participating European countries in terms of their financial stability and economic performance. In some countries, the links between public-sector financing and bank balance sheets remain close, as a result of which the EDIS would be using the accumulated protection funds for banking risk and the economic policy errors of some countries. Stable and efficient banking systems would be compelled to assume liability for unstable systems without being able to exert any influence over these risks. The German business initiative opposes such action.
As a powerful voice for industry and SMEs, the German business initiative 'Safe should mean safe' is committed to the most secure protection for savers, and consequently to the implementation of the high quality standards introduced in 2015. We firmly believe that they are the basis for responsible practices and for stability. This is why we support the opposition of the German government and parliament to the EDIS and want to reinforce it with the arguments and stance of the business community.
The following have joined forces with the initiative: the Federal Association of Liberal Professions (BFB), the Federation of German Wholesale, Foreign Trade and Services (BGA), the National Association of German Cooperative Banks (BVR), the German Hotel and Restaurant Association (DEHOGA), the Association of German Chambers of Industry and Commerce (DIHK), the German Raiffeisen Confederation (DRV), the German Retail Federation (HDE), the German Savings Banks Association (DSGV), the German Association of Skilled Trades (ZDH) and SME Groups Germany (ZGV).
Melanie Schmergal | National Association of German Cooperative Banks (BVR) | Press spokesperson | +49 (0)30 2021 1300 | firstname.lastname@example.org
Stefan Marotzke | German Savings Banks Association (DSGV) Press spokesperson | +49 (0)30 2022 55110 Stefan.Marotzke@dsgv.de
Alexander Legowski | German Association of Skilled Trades (ZDH) Press spokesperson | Tel: +49 (0)30 2061 9370 | email@example.com
Ute Brüssel | Association of German Chambers of Industry and Commerce (DIHK) Head of Communications | +49 (0)30 2030 81602 | firstname.lastname@example.org
Andre Schwarz | Federation of German Wholesale, Foreign Trade and Services (BGA) Deputy Chief Executive Officer and press spokesperson Tel: +49 (0)30 5900 99521 | email@example.com