SecondWill the German fortress rattle? The problem arises when it comes to mutual deposit insurance for European bank customers. So far, the German government has approved the plan of the European Central Bank (EZB) And the European Commission, and called for the reduction of non-performing loans on the balance sheets of southern European banks as a prerequisite. However, whether the new government composed of the Social Democratic Party, the Green Party and the Liberal Democratic Party will dare to embark on a controversial path in European politics is currently unpredictable. However, if the funds in their bank accounts are no longer protected by German security agencies, but by the European protection system, and Greek and Italian banks can also use these systems in emergency situations, then German depositors may be This is critical.
It is shocking that European institutions have been advocating for the completion of the European Banking Union recently because they know that this requires joint deposit insurance. The European Central Bank’s online banking supervision meeting on Tuesday and Wednesday demonstrated this.The first day is the President of the European Central Bank Christina Lagarde The common rules of the European banking market are needed. As FAZ reported in Wednesday’s edition, Andrea Enria, the head of the European Central Bank’s banking supervisory agency, called for European deposit guarantees.
“Don’t wait for the next banking crisis”
On Wednesday, EU Financial Market Commissioner Mairead McGuinness followed up at the European Central Bank meeting. The bank union can only be completed with a joint deposit guarantee. With a common safety net, European banks will become stronger and more resilient, which will also restore customer confidence. Ultimately, banks will also reduce their reliance on state aid in emergencies. For McGuinness, it shouldn’t take too long to complete the banking alliance. “We can’t wait for the next banking crisis,” the Irish woman said. The next step for the banking union is one of the main themes of the European Central Bank meeting. This is because representatives of the European Central Bank, the Commission, and other EU authorities see it as a necessary prerequisite for cross-border integration to create large European banks that can compete with American institutions.
Another important issue is tackling climate risks. The President of the European Central Bank, Frank Elderson, brought 113 European banks directly under the supervision of the central bank to court. The Dutchman said that none of them met our expectations and he still looks forward to a long way. By March 2022, the situation will become serious, when the European Central Bank will conduct climate stress tests on banks. It is about the ability of the institute to adapt to the risks of climate change. Natural disasters can weaken credit quality or accounts receivable, and assets in key industries such as the oil and automobile industries may depreciate. Elderson also pointed out that the legal risks associated with climate change are increasing.
