Deposit Guarantee Schemes

(Monetary dialogue with the ECB: European Parliament Briefing Paper July 2013).
Committee meeting 8 and 9 July.


A common Deposit Guarantee System is not likely to be implemented in the near future. However it is the natural endpoint in the formation of a European banking union.

Implementing a common Deposit Guarantee System would constitute a political leap. To facilitate this decision, countries should go further in harmonising the national Deposit Guarantee Schemes (DGS), including dimensions which have been neglected so far. The protection of deposits should be absolute for all deposits up to an ex-ante set threshold (e.g. EUR 100,000).

This should be firmly anchored within EU legislation and be clearly communicated in order to avoid the confusion as evidenced with the recent events in Cyprus. However, we do not favour additional, optional deposit insurance nor other optional elements which induce rather than eliminate differences between national DGS.

When in place, a common Deposit Guarantee System should be combined with a (at the moment not existing) European Resolution Authority and remain independent of the European Central Bank.

(Recent EP Briefing Papers).

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