BBA chair says European deposit guarantee scheme raises concerns about moral hazard
A common insurance scheme for European bank deposits could lead to moral hazard and should be limited to €100,000, according to British Bankers' Association (BBA) chairman Nigel Wicks.
Speaking today before a UK parliamentary committee, Wicks raised concern about the effects of a "union-wide" deposit guarantee – widely considered a pillar of banking union – and moreover described the decision by the EU and International Monetary Fund (IMF) to guarantee Cypriot bank deposits in March as
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