The German proposal to deepen the European banking union has the support of ING boss Ralph Hamers. He supported the plans in an interview with the German newspaper Welt am Sonntag.

According to Hamers, a banking union would strengthen lenders. “The banking system would be more stable and efficient. But one important element is still missing and that is the European deposit guarantee system. This is the only way to complete the banking union. This must be done absolutely,” he said.

With the banking union, the EU wants to achieve roughly three goals. The union wants to ensure further financial stability through a deposit guarantee system, equal rules for banks in Europe, and to intervene faster than before in the event of problems.

According to a recent plan from the German Finance Minister Olaf Scholz, Germany would be willing to consider more cooperation in guaranteeing deposits. Germany was opposed to such a step for years.

The German gesture came with a list of requirements aimed at reducing risk in the European banking sector. For example, limits should be set on the amount of debts that can be outstanding with banks without provisions being made.

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