ESRB Says Important to Guarantee Smaller Deposits

The European Systemic Risk Board stressed the importance of fully guaranteeing bank deposits below 100,000 euros($ 129,066) in the European Union Thursday.

"The ESRB shares the Eurogroup's view on the importance of fully guaranteeing deposits below EUR100,000 across the European Union," the ESRB said in a statement. "Increased legal certainty for bank creditors regarding the priority of their claims would reinforce the resilience of the financial system."

The statement from the board, which is charged with monitoring financial risk in Europe and chaired by European Central Bank chief Mario Draghi, comes after the Cypriot parliament rejected a bailout deal from the EU and the International Monetary Fund that included a controversial levy on individual depositors. Since then, a number of European leaders have called for a more "socially acceptable" solution, suggesting the bailout should shield smaller depositors from the tax.

Some have suggested that the line be drawn at EUR100,000. Tuesday, Spanish Finance Minister Luis de Guindos said Spain's stance is that depositors below EUR100,000 must be protected, and that such deposits are "sacred."

Thursday, Eurogroup Chairman Jeroen Dijsselbloem said the 17 euro-zone countries had felt all along that it had been " very important to have a fair burden sharing," meaning that there should be a greater burden placed on savers holding EUR100,000 or more.

(David Roman and Vanessa Mock contributed to this article)

Write to Christopher Lawton at christopher.lawton@wsj.com

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