Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

It is in place at present as a series of sovereign funds. The intention is that, as with the resolution fund, it will progress towards mutualisation. There are three phases to the proposed implementation. From 2017 to 2020 is the reinsurance phase for national deposit guarantee schemes, DGSs. From 2020 to 2024, we move to a co-insurance scheme. Finally, a full insurance scheme for the national DGSs will be implemented from July 2024. Deposit guarantee schemes provide an essential safety net to depositors in times of financial turbulence and afford them the necessary confidence that their money will be protected up to a particular level. A European deposit insurance scheme is considered the final pillar of banking union and is necessary to ensure savings are equally protected in all member states, thus further weakening the link between the banks and the sovereign.