After the economic and financial crisis, the European Commission has launched several proposals to strengthen the economic and financial governance in the European Union to regain trust in its financial institutions. The European Deposit Insurance Scheme (EDIS) is a part of the Banking Union, intended to secure the deposits within banks.
While welcoming the intent to strengthen the Banking Union, the opinion stresses the need to first see the full implementation of the existing regulation as well as conducting an impact assessment on the effects of the legislative proposal to prevent the risk of significant costs and negative outcome.
The opinion calls for the possibility to maintain the diversity of different types of banking and financial institutions, and especially secure the viability of local and regional public banks that often play a major role in building and maintaining basic infrastructure and financing SMEs and microbusinesses.
The existing institutional protection schemes should also be taken into account as a complement to the deposit scheme. Moreover, the priority of the EDIS should be the promotion of a sound financial policy while making sure that the banks’ contributions in the Scheme reflect the riskiness of their business.