ECB’s Draghi pleads with Parliament for euro area deposit insurance

FRANKFURT (Reuters) – European Central Bank President Mario Draghi renewed his call for a common bank deposit insurance scheme for the euro area on Monday, arguing that sharing a risk helps reduce it.

“In the period ahead, including the deliberations on a European deposit insurance scheme, we should not be held back by the distinction between risk reduction and risk sharing,” Draghi told the European Parliament’s committee on economic affairs.

Draghi said that banks had already substantially cleaned up their balance sheets and sharing the risk now would reduce it further, since it would lead to more orderly and faster bank resolution, which ultimately improves stability.

Germany has long opposed a common deposit insurance scheme, arguing that it could be asked to foot the bill for bank failures in financially irresponsible euro zone member states.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.