FRANKFURT, Sept 4 – A common bank insurance scheme in the euro zone could prevent bank runs, ECB rate-setter Olli Rehn said on Tuesday, joining a long list of policymakers to back a scheme that still lacks sufficient political support.
“The common deposit guarantee scheme is needed to prevent bank runs, especially those across national borders,” Rehn said in the Eurofi Magazine. “Confidence in secured bank deposits should be uniform throughout the euro area. A common European deposit insurance scheme would ensure this, even in severe crises.” (Reporting by Balazs Koranyi. Editing by Jane Merriman)