Euro MP backs savers

Recent bank collapses and financial crisis have left many throughout the UK calling for greater protection for savings.

Monday, 22nd December 2008, 11:29 am
Updated Thursday, 7th June 2018, 8:15 pm

Local Euro-MP, Sharon Bowles, has been working hard to ensure that we get this protection through effective and workable deposit guarantee schemes.

Sharon addressed fellow MEPs and welcomed the scheme which proposes guaranteeing up to €100,000 of all deposits, but says the payout times and maximum harmonisation aspects will need updating when the Commission completes a range of assessments required by the end of next year.

Maximum harmonisation proposals would mean countries are not able to offer protection greater than the agreed €100,000, when it comes into force in 2010.

Sharon said: "I welcome the proposal to set a minimum guarantee of €100, 000 however I have a couple of reservations.

"Firstly, the final timeframe of payouts has been agreed at 35 days. This is longer than was hoped and leaves citizens without access to funds for some length of time. This makes the possibility for emergency payouts, or better still arrangements for the continuity of banking services, all the more important.

"Secondly, the proposal for maximum harmonisation lacks the provisions of higher protection for temporary increased balances. For example, if a constituent has recently sold their house and needs to temporarily bank this money, this will be done unprotected.

"These kind of unhappy losses were seen following the collapse of the Icelandic banks. We need to learn from these events by ensuring that we have in place special protections so that people can not loose lifetime funds."

Sharon did secure a commitment that 'special balances' would be looked at by the end of next year, before maximum harmonisation takes effect.