Depositors will trust EU guarantee despite Cyprus, says Banque de France official

Despite plans to finance a bailout of the Cypriot banking industry with bank deposits, European Union (EU) policy-makers will push ahead with a new EU deposit guarantee – part of plans for a banking union – attendees at the Risk Annual Summit heard yesterday.

"We clearly hope that the two other parts [to banking union in addition to the Single Supervisory Mechanism (SSM)] – resolution and the deposit guarantee scheme – will come very quickly, because as the Cyprus situation has shown, it's