Protection at last for EU investors
At last the European Commission has come up with a proposal to safeguard European Union account holders from failing banks.
The Commission has made a proposal that the current rules should be strengthened to protect holders of bank accounts and retail investors.
The proposal looks to restore investor confidence after the worst financial crisis since the 1930s, resulting in the reduction of domestic savings and also the bailing out of banks.
The European Parliament and its member states will have the final say on this proposal.
If approved, this would mean anyone who deposited money say from a compensation claim or their life savings would be protected. The national deposit guarantee schemes protect the bank account holders for up to £84,000 per account per bank from the end of 2010
This would double the minimum compensation levels covered by 95 percent of all EU bank account holders and from the end of 2013; customers would get their deposits back within seven days, compared to three months at present.