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EC proposes increasing bank deposit compensation to €100k

The European Commission is set to increase the level of compensation for bank depositors to €100,000 and is proposing returning lost money within seven days if a bank collapses.

 
EC proposes increasing bank deposit compensation to €100k

The European Commission is set to increase the level of compensation for bank depositors to €100,000 and is proposing returning lost money within seven days if a bank collapses.

In a paper published today, the EC plans to adopt a package of EU-wide measures to create a sound financial system.

The increase in compensation level will mean 95% of all bank account holders in the EU will get all their savings back if a bank fails.

In order to speed up payouts, managers of deposit guarantee schemes will have to be informed early about problems at banks by regulators and banks will have to specify in their books whether deposits are protected or not.

Compensation will also increase for customers of investment services if the service fails due to fraud, administrative malpractice or operational errors. It will rise from €20,000 to €50,000.

EC internal markets and services commissioner Michel Branier said: ‘The adoption of today’s package marks the commission’s latest endeavour to bring transparency and responsibility to Europe’s financial system in order to prevent and manager future crises.

‘European consumers deserve better. They need reassurance that their savings, investments, or insurance policies are protected no matter where in Europe they are based. To make this a reality, I now call upon the European Parliament and the council to make rapid progress in approving today’s package.’

6 comments so far. Why not have your say?

Anonymous 1 needed this 'off the record'

Jul 12, 2010 at 16:52

Gosh!

Are the EU officials finally doing something for people other than themselves or is it a matter of the officials being in fear of losing their 'hard earned' winnings?

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J

Jul 12, 2010 at 17:14

It is about time that consumers are genuinely protected all round..

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James Barker

Jul 12, 2010 at 18:57

There should be more protection for people who were miss sold investments by financial advisors as well. The f.s.a. do not do enough again!

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ArianAdar

Jul 13, 2010 at 10:33

Since this will probably have to be backed by insurance no doubt we will all pay for it indirectly!

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pensionpost

Jul 13, 2010 at 12:07

When is it probable that this protection will actually be available?

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The Astrologer

Jul 14, 2010 at 12:37

So, how many people will accept 0% interest on their savings in exchange for this guarantee?

That's the way it's likely to go, and in a recession/ depression it should be accepted. Unfortunately too many people want index linking or 5% and no risk ..... it can't work like that. We'll all be lucky to have half of our money in real terms in ten years time once quantitative easing causes inflation lift-off.

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