European Parliament aims to improve depositor protection

04/10/2013 | Bloomberg

Terms of the Cypriot rescue have prompted the European Parliament to seek increased protection of depositors' money. Legislator Gunnar Hoekmark says lawmakers are amending a draft law so depositors at failing banks would face losses only after writedowns on other unsecured senior debt. "Uninsured deposits should be within the scope" of the bail-in regime, Hoekmark said. "However, they should be given a preferential treatment in the hierarchy and rank above unsecured bondholders to make sure risks to depositors are minimised."

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