EU plans to propose new deposit insurance scheme this year

FRANKFURT (Reuters) - The European Commission will propose a new European Deposit Insurance Scheme this year, hoping to overcome national resistance with the revamped plan, EU Financial Stability and Financial Services Commissioner Jonathan Hill said on Wednesday.

"Before the end of the year, the Commission will table a proposal for a European Deposit Insurance Scheme," Hill told a European Central Bank conference on financial supervision.

"This new proposal will, however, be different from the previous one," he said. "It will be based initially on a reinsurance approach and will build on Member States' existing schemes."

The new system will supplement national deposit guarantee schemes and provide funding when national schemes are unable to handle large local shocks, Hill added.

(Reporting by Francesco Canepa; Writing by Balazs Koranyi)