Euro zone bank risks low enough for common deposit insurance: ECB

BERLIN (Reuters) – Risks in the euro zone bank sector have already been reduced enough for governments to finally agree on a common deposit insurance scheme, European Central Bank supervisor Daniele Nouy said on Wednesday.

While most governments agree that the scheme is necessary, Germany in particular has held out, arguing that banks need to first clean up their balance sheets to ensure that German taxpayers would not have to foot the bill for the past irresponsibility of other euro zone members.

“The question is: when are the risks low enough?” Nouy said in Berlin. “In my view, we have reduced risks enough for the European Deposit Insurance Scheme to start. Now is the right time to set it up. It’s time to consider some solidarity.”

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