Abstract
In Europe, the regulation on deposit insurance schemes dates back to 1994 (Dir. 94/19/EC). This Directive only required a minimum level of harmonization between domestic deposit guarantee schemes in the European Union (EU). It was amended first in 2009 (Dir. 2009/14/EC). In the statement of the EU Commission in December 2012, a robust deposit insurance system was the third pillar of the Banking Union, but a Pan-EU Deposit Guarantee Scheme was excluded due to difficulties in reaching a political compromise. In 2014, a new Directive (Dir. 2014/49/EU) was approved which ensures a harmonized level of protection for depositors. In 2016, the European Commission (EC) prepared a new proposal to set up a European Deposit Insurance Scheme (EDIS). Many policy-related obstacles make it difficult to approve the proposal. Moreover, we believe that to strengthen the resilience of the euro-area banking sector to financial crises, the European legislature should think about the proper role of the EDIS in the new legal framework for management of banking crises.
The opinions expressed in this Chapter are solely those of the author and do not represent the official policy or position of the Administrative Board of Review or of the European Central Bank.
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- 1.
As regards NPLs see Chap. 8.
- 2.
Judgment 14.12.2004, C-434/02, Arnold Andre’ GmbH & Co. KG/Landrat des Kreises Herford, para. 46; Judgment 14.12.2004, C-210/03, Swedish Match AB/Secretary of the State for Health, para. 48.
- 3.
The Commission’s Banking Communication of 2013, on the application of State Aid rules to support measures in favor of banks in the context of the financial crisis, expressly addresses the interventions of DGSs. The Communication states that the payout of depositors does not constitute State Aid. However, “the use of those or similar funds to assist in the restructuring of credit institutions may constitute State Aid. Whilst the funds in question may derive from the private sector, they may constitute aid to the extent that they come within the control of the State and the decision as to the funds’ application is imputable to the State.” (para. 63). See OJ 2015 L203/1).
- 4.
With regard to the issue of the compatibility of voluntary interventions of the DGSs with the rules on State aid (see Footnote 3), we point out the decision of the General Court of 19 March 2019 (Judgement, 19.3.2019, Italy v Commission, T-98/16; joined cases T-98/16, T-196/16, T-198/16), published at the time this chapter went to press. The Court annulled the Commission’s decision concerning the measures taken by the Italian DGS (Fondo Interbancario di Tutela dei Depositi—FITD) to prevent the failure of a bank, Tercas. According to the Court, the Commission concluded, incorrectly, that the measures granted by the Italian DGS to Tercas entailed the use of State resources and were imputable to the State.
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Brescia Morra, C. (2019). The Third Pillar of the Banking Union and Its Troubled Implementation. In: Chiti, M.P., Santoro, V. (eds) The Palgrave Handbook of European Banking Union Law. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-13475-4_17
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