DK Opinion on the CMDI Legislative Package of the European Commission

The European Commission published a legislative package to revise the requirements on crisis management and deposit insurance ("CMDI Review"). The German Banking Industry Committee believes that the path proposed by the European Commission in the CMDI legislative package would significantly impair the performance of the proven national deposit guarantee schemes as well as call into question the structure of the German banking market. In addition, the proposal would create disincentives (moral hazard) and jeopardize financial stability as a whole. The German Banking Industry Committee therefore rejects the legislative package in its entirety and sets out the reasons in detail in its statement.