The European Commission has formally requested Belgium, Cyprus, Estonia, Greece, Italy, Luxembourg, Poland, Romania, Slovenia and Sweden to fully implement the Deposit Guarantee Schemes' Directive (Directive 2014/49/EU, DGSD). This Directive, which builds upon the previous Directive 94/19/EC of 1994, improves the protection of deposits. Depositors will benefit from quicker pay-outs and a stronger safety net as more unified funding requirements will ensure that deposit guarantee schemes are pre-funded and will be able to fulfil their obligations towards depositors more efficiently. It is a step towards a fully-fledged Banking Union to create a safer and sounder financial sector in the wake of the financial crisis.
For Member States within the Banking Union, the implementation of the DGSD is a pre-condition for the future use of the European Deposit Insurance Scheme proposed by the Commission (see IP/15/6152). This future Scheme would provide a stronger and more uniform degree of insurance cover for people with bank deposits in the Banking Union, ensuring that depositors can be equally confident in their bank, wherever that bank is located.
The deadline for transposing these rules into national law was 3 July 2015 (see MEMO/13/1176). However, 10 EU countries have failed to implement these rules into their national law. The Commission's request takes the form of a reasoned opinion. If these Member States fail to comply within two months, the Commission may decide to refer them to the Court of Justice of the EU.
The EU has harmonised deposit guarantee scheme rules since 1994. Since 2008, the European Commission has adopted a number of measures to ensure the stability of financial and banking services. From 2009 onwards, all EU Member States were required to increase coverage by their deposit guarantee schemes (DGS) to a uniform level of €100,000 per depositor and bank by the end of 2010. All Member States have implemented this earlier legislation. (see Memo/15/6165).
The improved Deposit Guarantee Schemes Directive (DGSD) was adopted in summer 2014 to provide reinforced protection for depositors, with quicker pay-outs and improved information. This Directive also requires that all DGSs are pre-funded to ensure that they will be able to fulfil their obligations towards depositors.
In parallel to its proceedings on DGSD, the Commission has also launched infringement proceedings against those Member States that have not transposed the Bank Recovery and Resolution Directive (BRRD).
- Frequently asked questions on Deposit Guarantee Schemes, see MEMO/14/296.
- On the December 2015 infringement package decisions, please refer to the fullMEMO/15/6223.
- On the general infringement procedure, see MEMO/12/12
- On infringement procedures, see here.