German Banker Gains Support for Narrower Banking Union
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Georg Fahrenschon, who led Germany’s savings banks in helping quash a proposal for Europe-wide deposit guarantees, is now seeking to limit the remaining aspects of a European banking union: a joint resolution fund and central supervision of all the region’s lenders.
“I’m hard put to find anyone who speaks in favor of common European deposit insurance these days,” Fahrenschon said in an interview in Frankfurt on Nov. 9. He stepped down as Bavarian Finance Minister last November and became president of the German savings banks association, or DSGV. “It’s a commonly held misconception that banking supervision, banking resolution and deposit insurance all has to be structured centrally via Europe.”