![European deposit insurance scheme (EDIS) [EU Legislation in Progress]](https://i0.wp.com/epthinktank.eu/wp-content/uploads/2016/03/capture7.png?fit=478%2C317&ssl=1)
Written by Issam Hallak (2nd edition, updated on 24.05.2024).
As part of its ambition to complete the banking union, the European Commission has proposed to introduce a European deposit insurance scheme (EDIS) to reduce the potential spill-over risk of local bank failures on the financial stability of the economic and monetary union as a whole. According to the proposal of 24 November 2015, the EDIS would be the third pillar of the banking union. It would be introduced gradually, in three separate phases between 2017 and 2024, complementing national deposit guarantee schemes. The proposal would also have implications for the overall resolution framework for banks under the single resolution mechanism (SRM), so the Commission proposes to amend the SRM Regulation (EU) No 806/2014, introducing a common deposit insurance system as of 2024. In the meantime, the Commission has tabled a package of proposals for bank crisis management and deposit insurance.
In Parliament, the Committee on Economic and Monetary Affairs (ECON) is responsible for the file. While the first draft report was never adopted by ECON, a second draft report was adopted in ECON in April 2024. The report suggests focusing on the first step of EDIS – namely the liquidity insurance fund, now called ‘EDIS I’ – and reiterates the need for a fully-fledged EDIS, to be adopted through a new Commission proposal.
Complete version
- May 2024: ‘European Deposit Insurance Scheme‘, (2nd edition)
| Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) No 806/2014 in order to establish a European Deposit Insurance Scheme |
| Committee responsible: | Economic and Monetary Affairs (ECON) | COM(2015) 586 24.11.2015 |
| Rapporteur: | Othmar Karas (EPP, Austria) | 2015/0270(COD) |
| Shadow rapporteurs: | Jonás Fernandez (S&D, Spain), Billy Kelleher (Renew, Ireland), Kira Marie Peter-Hansen (Greens, Denmark), Johan Van Overtveldt (ECR, Belgium), Marco Zanni (ID, Italy), Dimitrios Papadimoulis (The Left, Greece) | Ordinary legislative procedure (COD) (Parliament and Council on equal footing – formerly ‘co-decision’) |
| Next steps expected: Plenary vote on committee report |
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