The European Banking Authority (EBA) on Wednesday 12 February unveiled 23 new proposals to strengthen the European regulatory framework for national bank deposit guarantee schemes in the interest of consumer protection.
This third set of recommendations focuses on the ex ante financing of the national schemes to be funded by the banking industry and on the use of bank guarantee funds by Member States. According to the EBA, EU rules could be clarified regarding the nature of the financial means available to a national scheme, which must reach the target level of 0.8% of the amount of guaranteed deposits by July 2024.
The ‘Tercas’ case. The European Authority is analysing the General Court’s judgment in the ‘Tercas’ case (see EUROPE 12219/23). It annulled the European Commission’s decision of December 2015 that a preventive intervention from the Fondo Interbancario di Tutela dei Depositi (FITD) - a private mutual legal consortium - in favour of one of its members constituted State aid.
In its opinion, the EBA asks the Commission, which has appealed this judgment, to analyse the consequences of this judgment and to clarify the issue of the maximum financial threshold for the mobilisation of bank deposit guarantee schemes to prevent bank failures.
The Commission is also being asked to explore the introduction into European legislation of the possibility of using a failed bank’s assets to reimburse savers.
Previous EBA recommendations have focused on money laundering risks and information for savers whose bank savings are protected up to 100,000 euros (see EUROPE 12362/3).
Some consider that incomplete harmonisation of national regimes is an obstacle to the completion of the banking union in the euro area through the establishment of a European Deposit Insurance Scheme (EDIS).
See the EBA recommendations: http://bit.ly/39ugQiE (Original version in French by Mathieu Bion)