Connect with us

Hi, what are you looking for?


EU raises bank deposit shield

STRASBOURG, Dec 18 – Lawmakers at the European Parliament approved on Thursday plans requiring EU states to guarantee bank deposits up to 100,000 euros (146,000 dollars) in case of bankruptcy instead of 20,000 euros currently.

The plans, adopted with 556 votes in favour, 21 against and three abstentions, are aimed at reviving confidence in the banking system in the wake of the worst financial crisis in generations.

In a first stage, the minimum state guarantee on bank deposits in the 27-nation European Union will be lifted from 20,000 euros to 50,000 euros in June 2009.

The minimum will then be raised by the end of 2010 unless not all member states are deemed to be able to do so.

The plans also reduce the amount of time governments have to reimburse depositors in the event that their bank goes bust.

Governments would have to pay depositors within 30 days, down from three months currently — a limit which can be extended to as much as nine months.

The plans still have to be approved by member states.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...