The member umbrella organisations of the German Banking Industry Committee have called for a clear separation between the EU Commission's proposals for bank resolution financing on the one hand, and common European deposit guarantee standards on the other.
The proposal for a Directive on Deposit Guarantee Schemes, which has been put on hold because of the European crisis management efforts, contains new, more stringent requirements with regard to the protection of customer deposits within the European Union. The banking industry has now called for a rapid adoption of this proposal. The German banks and savings banks have reaffirmed their opposition against any 'communitisation' of the deposit guarantee schemes in Europe because this would be at the expense of Germany’s savers.
Single Supervisory Mechanism: German Banking Industry Committee calls for stable legal basis and clear division of responsibilities
The purpose of the European Banking Supervision is to increase the stability of the financial system. While the currently planned design of the supervisory authority is not a perfect solution, it was the only option in view of the economic and political realities and because of time pressure. However, the German Banking Industry Committee insists that the supervisory authority must have a stable legal basis and believes that Art. 127(6) of the Treaty on the Functioning of the European Union (TFEU) does not provide sufficient ground for a delegation of responsibility on this scale; instead, such delegation of supervisory responsibility would require an amendment to the European Treaties.
In addition, the Committee finds that there must be a clear division of responsibilities at EU level and duplication between institutions must be avoided.
Full Press release
© German Banking Industry Committee
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