EU draft bank rescue law would not shield big deposits

A draft law that a group of European Union lawmakers voted for on Monday would shield small depositors from losing their savings in future bank rescues, but customers with more than 100,000 euros (HK$997,800) in savings when a bank failed could suffer losses.

A group of lawmakers in the European Parliament’s economics committee overwhelmingly voted that, from 2016, large depositors in the EU might suffer losses if a bank gets into serious trouble. The plan was similar to a deal in Cyprus, where wealthy depositors at two banks took hits to save the country from bankruptcy.

via Business feed http://www.scmp.com/business/banking-finance/article/1242624/eu-draft-bank-rescue-law-would-not-shield-big-deposits