Your English writing platform
Discover LudwigSuggestions(2)
Exact(8)
The Cyprus crisis also highlights the lack of a common deposit insurance regime.
But the political obstacles to a common deposit guarantee fund and other features of a banking union remain high.
The lack of a common deposit insurance scheme in the Eurozone means that deposit insurance is a luxury available only to those countries that can afford it - which are also the countries that least need it.
During 2013 the EU laws needed to consolidate the banking union, including the setting up of a resolution mechanism and fund, and a common deposit guarantee scheme, will be put in place.
Because of opposition from Germany and others, the European Commission did not put forward a plan Wednesday to create a common deposit insurance program, which is considered essential to preventing bank runs.
In a report issued Tuesday, the central bank said it envisioned that euro zone countries would share responsibility for regulating big banks and for managing a common deposit insurance fund.
Similar(51)
It harmonises deposit-insurance coverage but does not provide a common deposit-insurance fund.
And a common deposit-insurance fund could also credibly reduce the risk of bank runs in vulnerable countries.
Apart from a credible fiscal backstop (the current rescue fund may be too small) it also needs a common deposit-guarantee scheme.
A common deposit-guarantee system in the euro zone makes sense, however much the Germans and Eurocrats may claim it is irrelevant.Then look at the promise of a common means of winding down troubled banks.
Germany is resisting the risk-sharing elements of such a union, such as common deposit insurance, a common fund to wind up insolvent banks, and direct equity recapitalisation of banks by the ESM.
Write better and faster with AI suggestions while staying true to your unique style.
Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com