July 12 (Reuters) – The European Union’s executive put forward proposals on Monday to bolster consumer confidence through better and faster protection of investors who face a run on their bank or have been the victim of fraud.
The European Commission’s plans are part of wider efforts to learn from the financial crisis, in which the savings of millions of people were hit by extreme market volatility and some banks had to be rescued by taxpayers.
The Commission has proposed toughening EU rules that protect bank account holders and retail investors. It has opened a public consultation on improving how insurance policy holders are safeguarded.
The 27 EU states and the European Parliament have the final say on the proposals, which seek to encourage investors to save for their retirement and avoid taxpayers having to bail out banks again in any future crisis.
* Under EU rules dating to 1994, all states must set up national deposit guarantee schemes to reimburse account holders up to a certain level if their bank runs into trouble.