Yesterday’s informal dinner of the European Council discussed the growth agenda and the prospect for Eurobonds. But it also, for the first time, erred the idea of a supranational deposit guarantee scheme. This is something we had been advocating for a very long time but has taken a whole new sense of urgency with the acceleration of deposit attrition in a number of countries.
The monthly data suggest nonetheless that “runs” on banks are still very localized and that they are largely concentrated in Greece and Ireland. However, the debate over a deposit guarantee (whose shape and form is still unclear) could be immensely helpful in reducing the risks of deposits flight in other fragile banking systems (Spain, Cyprus…).
More importantly, this ought to set in motion other necessary elements of a banking union: a supranational resolution scheme and a real federal supervisory authority.
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Subscribe to posts' commentsMaria Cristina Guttendorf Cipriano 31st May 2012
Dear Honorable Personalities, I believe that the right way to boost global economy, is to incorporate a conglomerate of finance, investment and development partnerships and memberships Corporation with full support of G8 Governments and Agenda Forward to be met objectively, because the anchor of economy is international business goals addressing all spheres of profits generating, to be reached to contribute for its sustainability within global markets demand and offer reciprocity as bilateral cooperation exchanging policy to establish a powerful Investors Network of all most elementary industries to produce, and to give employment in large scale, of main economies demand support of finance. We could consider that global economy requires an indepth review of best achievements and goals objectiveness with the aim to reach the economic sustainability of nations affected by global financial crisis. It urges the urgency to attribute corporate investment banking policy in adopting different modus operandi for economies financing demand as required. In God we trust. Yours Respectfully, Maria Cristina Guttendorf Cipriano International Business Assistance,Lda
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