Buch enters reservation on common deposit guarantees

Bundesbank deputy says safeguards must be put in place first

Claudia Buch

Deutsche Bundesbank deputy president Claudia Buch today (February 4) said the eurozone had not yet met the essential preconditions for a common deposit guarantee scheme, and warned of the danger of creating moral hazard.

Buch's concerns reflect the complaint that ever closer union in the eurozone creates numerous avenues for risks to be "mutualised", and for certain taxpayers to end up footing the bill for other countries' incautiousness.

She told a conference jointly hosted by the Bundesbank

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account