They wanted an opaque way of encouraging the purchase of weak banks by stronger banks. (alephblog.com)
In addition to highlighting the risk of eroding protection for European bank bondholders, we believe the action taken in Cyprus will reignite concerns about the stability of deposits in weaker banking systems, especially considering that deposit insurance is still provided locally. (news-to-use.com)
Euro zone officials have long debated setting up a deposit insurance scheme but Germany opposes this, fearing that German taxpayers would be asked to foot the bill for bailing out weaker banks on the currency bloc's periphery. (reuters.com)