German Finance Minister Olaf Scholz called on European countries to implement the European banking Union (EBA) initiative faster, writes Reuters.
“It is important not to dwell on one issue,” said Scholz, referring to the single European Deposit insurance system (EDIS). — If we want to create a banking Union, all countries must move towards a compromise.”
The idea of creating an EBS was first announced in 2007, after the beginning of the crisis in the us mortgage market, which also affected European banks and their clients. Since then, however, the integration process has repeatedly encountered obstacles.
At the moment, it is expressed only in the form of EDIS, in which Eurozone banks make contributions to the common Fund, as well as in two mechanisms: the Single dispute resolution mechanism (SRM) and the Single Supervisory mechanism. The first sets the rules and regulations for Bank bankruptcy, as well as prevention of their bankruptcy and financial recovery. The second is responsible for regulatory and Supervisory functions, in particular for issuing and revoking banking licenses. .
According to Scholz, Germany is ready to contribute to the formation of the European banking Union by supporting the initiative to create a common Deposit protection system (an expanded version of EDIS).