German savings banks said they were pleased that the most recent European Union summit to stem the sovereign debt crisis didn’t result in a pan-European deposit insurance plan.
“This is a big achievement by Chancellor Angela Merkel,” Georg Fahrenschon of the DSGV banking group said in a statement today. “It will avoid a situation in which German savers could be liable for ailing foreign banks.”
The protection of deposits should be harmonized on the European level with “real” financial means in each country, while keeping national responsibilities in place, Fahrenschon said.
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