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Europe's insurance deposit scheme still years away - ECB

FILE PHOTO: The head quarter of the European central bank (ECB,R) is photographed during sunset in Frankfurt, Germany, April 22, 2020, as the spread of the coronavirus disease (COVID-19) continues. REUTERS/Kai Pfaffenbach

FRANKFURT (Reuters) - A European Deposit Insurance Scheme, long advocated by the European Central Bank, is unlikely to be agreed on in the coming years, ECB bank supervisor Andrea Enria said on Wednesday.

“A fully fledged EDIS should remain the goal but will not be there in the coming months and years,” Enria told a conference. “I will finish my mandate in a little bit more than three years and I doubt there will be a fully operational EDIS when I leave.”

The absence of the euro zone-wide insurance scheme is seen as a key impediment in the integration of the bank sector, which is now fragmented along national lines, keeping profitability and efficiency low.

Reporting by Balazs Koranyi; Editing by Francesco Canepa

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