Schleweis: “Deposits are already protected within the EU banking union”

“Today, deposits are already covered by a common level of protection in the European Union. This means that the third pillar of the banking union already exists. We see no need for further action”, stated Helmut Schleweis, President of the German Savings Banks Association (DSGV), earlier today in light of the rekindled debate about further steps to be taken in respect of the banking union.

“The primary political challenge will be to reduce the level of non-performing loans in the euro area and to relax the close links between bank balance sheets and government bonds. This is not the time to collectivise deposit guarantee schemes”, said Schleweis. “Shifting burdens to others will not bring Europe closer together. Risk and liability will remain two sides of the same coin.”