France to announce new bank measures by end of week
Anticipating bank failures in the coming weeks, French president Nicolas Sarkozy will institute measures to guarantee savings in French banks. Since France holds the EU presidency, he is also hoping to lead by example and convince other European countries to quickly institute the same guarantee to prevent bank runs. Ireland is also about to rapidly put in place a banking gurantee, similiar to the FDIC in the United States.
Though the European Central Bank controls monetary policy with the euro, there is no central European body to regulate the banking industry or guarantee people's savings. The UK has had a system to guarantee people's savings for some time.
France will announce new measures to combat the financial crisis in the coming days, President Nicolas Sarkozy's office said on Tuesday after a meeting between the president and French bank chiefs.
It said Sarkozy had reminded French banks of their responsibility to provide finance to the economy.
"By the end of the week, the government will announce new measures," the statement said, without giving details.