FRANKFURT Nov 19 Joint deposit guarantees are
not a crucial issue for a banking union, European Central Bank
Executive Board member Peter Praet said on Monday.
"Deposit guarantees are not a very key question ... deposit
guarantee funds have never been enough for a systemic crisis,"
Praet, who has the economics portfolio among his tasks at the
ECB, told the Euro Finance Week conference in Frankfurt.
Germany has resisted the idea of a Europe-wide deposit
guarantee as part of a banking union, and ECB President Mario
Draghi said earlier this month "financial union does not have to
imply the pooling of deposit guarantee schemes".
After three years of piecemeal crisis-fighting, European
countries are attempting to agree on a banking union to lay a
cornerstone of wider economic integration and protect the euro.
The European Commission has proposed making the ECB the main
supervisor for euro zone banks to prevent problems at lenders
struggling with bad debts from sucking weak euro zone countries
deeper into the debt crisis as they borrow to finance bailouts.
(Reporting by Sakari Suoninen and Paul Carrel)