Business Irish

Saturday 24 August 2019

EU to secure bank deposits of €100,000 by 2024

Significant progress made since crash, said Sharon Bowles. Photo: Bloomberg
Significant progress made since crash, said Sharon Bowles. Photo: Bloomberg

Michael Cogley

Bank deposits in the European Union of up to €100,000 should be guaranteed by 2024 under a new proposal made by the European Commission yesterday.

The new proposal, which will be implemented over the coming months, is being made to progress the so-called banking union and help reinstate confidence in the banks.

Meanwhile Ireland is well placed to be at the forefront in allowing assent management firms to fill the hole left by high street banks in corporate funding, according to EU official Niall Bohan.

Mr Bohan was speaking as part of a panel on Europe's financial sector at the Institute of International and European Affairs (IIEA) in Dublin.

"The first priority and the one that captured the most attention is trying to use alternative finance in its different forms like crowd-funding, venture capital, angel investing and how to connect with capital hungry firms, particularly the high growth firms who need expansion finance that they're not getting from banks.

"The high street bank is doing less and less corporate financing so who's going to fill this gap? That's where we think the asset management industry, in its different forms, and this country, is well placed to be in the vanguard in developing this," Mr Bohan said.

British Baroness Sharon Bowles, who was also on the committee, spoke of the timeline during the financial crisis and the progress that has been made since the crisis.

"The achievements are significant. We have the single rulebook and the start of banking union. Banks have capital in order of magnitude greater than at the time of the crisis. Loss absorbing instruments under bank recovery resolution requirements will soon be added."

Irish Independent

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