MIL OSI Translation. Region: Germany / Germany –
Source: Ministry of Finance the European banking Union is an important next step in the European Integration. You can protect the European tax-paying, creating the basis for a robust financial sector that works efficiently and safely for all citizens. In addition, a single can ensure the internal market for financial services to more cross-border investment and the growth potential in Europe, increase.The discussions for the completion of the banking Union on the European level for some time to a Halt. To end this standstill, the Federal Finance Minister, Olaf Scholz, introducing European-level proposals, the four elements include:
Efficient Supervisory regime and crisis management necessary to establish common insolvency and single resolution mechanisms for all banks, regardless of their size and systemic importance. Europe should look to the example of the U.S. Deposit guarantee Fund, the Federal Deposit Insurance Corporation (FDIC),.
To achieve further reduction of RisikenUm the goal of a stable banking sector currently existing risks need to be reduced further. This means that the number of non-performing loans must be reduced. The financial and sovereign debt crisis have shown us that government bonds are not risk-free investment form. You should be treated by the regulator accordingly. This Problem needs to be addressed.
European EinlagensicherungZu a strengthened architecture of the European banking Union, a European Deposit reinsurance heard. A European reinsurance system could compensate for the different efficiency of the national Deposit guarantee systems. As a result, bank runs could be avoided, which arise due to a lack of confidence of savers in the efficiency of the national system. The European financial system would be stabilized as a whole.
Avoid ArbitrageDas tax law is one of the Central causes for the distortion of competition within the European Union. Therefore, more needs to be done in order to prevent Arbitrage. Germany pleads together with France for a common corporate tax base (GKB). Progress in the banking Union must not lead to distortion of competition to be promoted at the end of Tax planning, in particular, to shift Income more. For this reason, a uniform taxation for banks in the EU is essential.
More on the topic of guest post in the Financial Times
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and/or sentence structure need be perfect.