Germans Oppose Guaranteeing Europe’s Deposits, Savings Banks Say

More than two thirds of Germans oppose their savings being used to guarantee deposits in other euro area countries, according to a survey commissioned by a group representing Germany’s savings banks.

Sixty-nine percent of Germans reject the joint liability plan proposed as a means to help resolve Europe’s debt crisis, according to the poll in July and August of 2,000 people aged 14 or older, Berlin-based DSGV said on its website today. No margin of error for the survey was given in the statement.

“We’re fighting against European institutions wanting access to the funds, which are used to protect the security of our customers,” Georg Fahrenschon, DSGV’s president, said in the statement.

The European Union has scrapped plans to centralize bank deposit insurance in the near term, instead asking each nation to set up its own system. Germany’s savings banks, totaling more than 420, say they’re battling to prevent joint liability from being tabled again as EU leaders transfer industry supervision to the European Central Bank from national regulators to break the link between lenders and states.

Europe’s leaders committed to establishing a euro-area bank supervisor by the end of the year at an Oct. 18 summit in Brussels. They pushed divisive questions on cost-sharing into 2013.

Deutsche Bank AG co-Chief Executive Officer Juergen Fitschen said Oct. 17 that while he considers the formation of a common European banking regulator next year to be possible, leaders should implement joint deposit protection in the “mid- term.”

To contact the reporter on this story: Nicholas Comfort in Frankfurt at ncomfort1@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net

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