The Position of the Deposit Insurance Fund on the Initiative of European Member of Parliament Z. Roithová
Prague, 17 April 2011 – In response to the recent news from the European Parliament, the Deposit Insurance Fund expresses its bewilderment with respect to the activity of the European M. P. Zuzana Roithová, thanks to whose activity the Internal Market Committee adopted an amendment to a European Directive containing a proposal for another significant shortening of the period for commencing the payout of deposit compensation, from the present 20 business days to a mere 7 business days.
“The Deposit Insurance Fund has, in cooperation with the Ministry of Finance of the Czech Republic, long noted that another shortening of the period for the payout of compensation for client deposits in the event of the bankruptcy of a bank may involve additional costs in the order of tens of millions of crowns, which would, most likely and largely needlessly, be borne by the clients of domestic banks. Given that there was a significant shortening in the period for the payout of compensation, from 3 months to 20 business days, as at 31 December 2010, the Fund considers another shortening of that period to be premature, rash, and harmful. The DIF, together with other European insurers, endeavours to advance a rational approach to the deepening of bank deposit protection, striving to satisfy the claims of depositors in a timely manner, reliably, and in the amount stipulated by law,” says Josef Tauber, Chairman of the Board of Directors of the Deposit Insurance Fund, adding in response to the recent events: “It is sad that Ms. Roithová is advancing something against which the representatives of the Czech Republic have spoken in European fora.”
Publikováno: 16.4.2011
