European Deposit Insurance Scheme

EESC opinion: European Deposit Insurance Scheme

Key points:


Stable, secure and well protected deposits are in everyone's interest, and first and foremost the interest of savers and depositors.

For the EESC

  • it is apparent that the introduction of further risk sharing (EDIS proposal) is to be accompanied by further risk reduction in the Banking Union. As both have a number of fundamental and important objectives in common relating to the strengthening and completion of the Banking Union and necessary for offering a balanced solution, they have to be dealt with in parallel and without delay and actually put into effect;
  • it is essential to use the EDIS to further strengthen the Banking Union (of which it forms the third pillar), to increase its resilience against potential financial crises and to boost economic and financial stability;
  • an EDIS will have a positive impact on the situation of individual Member States and banks by being more able to cushion local shocks. This may discourage speculation against specific countries or banks, thus reducing the risk of bank runs. At the same time it will further weaken the link between the banks and their national governments;
  • the measures announced to reduce risk in the Banking Union are essential. They help to strengthen the Banking Union by ensuring a more level playing field between banks and weakening their links with their national sovereign;
  • it is imperative that the existing legislative framework of the Banking Union (BRRD and DGS Directive) is fully implemented by all Member States. Strenuous efforts must be made to prevent potential risks of moral hazard with respect to banks, government and savers when further developing this pillar of the Banking Union;
  • the proviso that a Member State can make use of the EDIS only if it fulfils all the conditions is appropriate;
  • it is important that the Commission carry out a comprehensive in-depth impact study in order to further strengthen the legitimacy of the proposal;
  • it is important that sufficient attention be paid to the effects of the measures on the granting of credit - in particular, lending to SMEs, SMIs, start-ups and other young companies;
  • it is welcome news that the new deposit insurance scheme is to be cost-neutral for the banking sector, but at the same time the EESC believes that it would be preferable for the proposed risk-based contribution arrangements to be directly incorporated into the EDIS proposal, rather than dealing with this issue in delegated acts.