Deposit protection weakening, banks caution

The National Bank, commercial banks, and the Raiffeisen Association are all raising concerns about a potential weakening of the deposit insurance system. This comes after a decision in the EU Parliament, spearheaded by rapporteur Othmar Karas (ÖVP), allowing for national deposit insurance funds to be used for resolution cases at the European level. Specifically, half of the funds from national deposit protection funds, totaling two billion euros in Austria, may be transferred to an EU pot, with access granted to the European Resolution Authority if necessary.

While the National Bank supports the idea of better preparation for crisis situations, Deputy Governor Gottfried Haber emphasizes the need for a coherent overall concept before making such a significant system change. The current proposal raises concerns about the protection of depositors, as European resolution authorities would have access to these funds, potentially compromising the safety net for savers.

Bank chairman Willi Cernko and Raiffeisen Association Secretary General Johannes Rehulka both warn against such experiments, particularly with the EU elections approaching. They stress the importance of maintaining financial market stability and preserving savers’ trust in the system, urging caution before implementing any drastic changes. These warnings come as stakeholders in the financial sector grapple with the implications of the proposed adjustments to the deposit insurance system.

In addition to the concerns raised by various financial institutions and associations, there are also technical issues being reported on certain websites. Certificate verification problems, errors in loading pages, and issues with downloading software are just some of the issues users have encountered while navigating online platforms related to electric car charger installation and other services. These technical challenges add another layer of complexity to the ongoing discussions surrounding deposit insurance and financial stability.