DSGV President Schleweis: EU Commission must not jeopardise proven deposit protection schemes through the back door

The EU Commission’s latest plans for harmonising bank resolution jeopardise the established and well-functioning institutional guarantee schemes put in place by Savings Banks and cooperative banks. Helmut Schleweis, President of the German Savings Banks Association, made this clear in his reaction to the proposals presented by the Commission today on the CMDI review: “Savers want their money to be safe and well protected. That is why they entrust it to Savings Banks. Our guarantee scheme provides twofold protection: It protects both depositors and member institutions. This principle must not be undermined.”

The proposals for CMDI reform which have now been presented would unnecessarily raise the bar for preventive measures designed to protect member institutions. The fast, pragmatic stabilisation measures currently available to avert a problem would no longer be possible. 

Recent problems encountered by some US banks and the big Swiss bank Credit Suisse had shown that careful planning for the potential resolution of banks made sense. Schleweis: “If there is any need for the EU Commission to take action in this respect, it should not call into question the successful business model of regional banking groups.”

The CMDI review must not be used to introduce the European Deposit Insurance Scheme (EDIS) through the back door. Schleweis: “In our view, it is clear that those who take the risks must be held liable for them. Money given to Savings Banks by their customers is not available to bail out global finance companies.”