The latest decisions of an EU Parliament committee are causing major concerns for the Austrian financial sector. According to the plans, half of the resources from the national deposit protection funds should be transferred to a European pot. A European resolution authority should be able to access these funds.
The Austrian National Bank warns that this would require significantly higher funding for deposit protection funds in the future. The OeNB welcomes the efforts to be better prepared for times of crisis. However, this is a “potentially serious system change”, as Deputy Governor Gottfried Haber states.
Austrian deposit insurance is cost-effective and has proven itself in recent years, according to the OeNB. And the deposit protection funds amount to about two billion, despite interim security cases. Euro very well filled. The Austrian protection shield protects savers against possible losses of up to 100,000 euros and in special cases up to 500,000 euros if the bank can no longer pay out the money.
WKÖ: “misses the goal of protecting savers”
“If the European resolution authorities can access the resources of the deposit protection funds in the future, this will clearly defeat the purpose of protecting savers for savers,” criticizes Willi Cernko, chairman of the Federal Banking and Insurance Department of the Austrian Federal Economic Affairs Department . Chamber (WKÖ), in a press release.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
