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EC Proposes Hike Of Min Deposit Guarantee To EUR100,000

The European Commission has proposed to increase the minimum deposit guarantee threshold to EUR100,000 in one year, from EUR20,000 at present, while the payout period in the event of bank failure is to be reduced from three months to three days, the Commission said.
EC Proposes Hike Of Min Deposit Guarantee To EUR100,000
15 oct. 2008, 14:34, English

“The new rules are designed to improve depositor protection and to maintain the confidence of depositors in the financial safety net,” the EC said in a report.

The EC said that under the new rules, the minimum level of coverage for deposits will be increased within one year from €20,000 to €100,000, and initially to €50,000 in the intervening period.

The proposal now passes to the European Parliament and the Council of Ministers for consideration.

In Romania, the government has approved on Tuesday an emergency ordinance to increase the minimum deposit guarantee threshold to EUR50,000, from EUR20,000 for a one-year period starting October 15.

On Monday, central bank governor Mugur Isarescu said that there was no need for an increase of the minimum deposit guarantee threshold as 99.2% of the bank deposits in Romania are below EUR20,000, but the Romanian authorities need to comply with the European regulation.