Reuters: European depositors will "pay" for the gaps of banks

Deposits of 500 million EU citizens could be used to finance long-term investments to stimulate the economy and bridge the gap left by banks due to the economic crisis, an EU document that Reuters agency has in its possession reads.

The EU wants to disconnect the bloc of the 28 countries from their heavy reliance on banks and is looking for other ways to finance small businesses, infrastructure and other investments.

"The economic and financial crisis has reduced the capacity of the financial sector to channel funds into the real economy, and on long-term investments in particular," the document states.

According to it, the European Commission will ask the insurance regulatory authority of the Eurozone in the second half of this year, for advises on a possible draft law "to mobilize the personal retirement savings for long-term financing."

Banks have expressed their complaints that they are precluded from lending to the economy due to the regulations adopted after the crisis forcing them to hold a much larger security "cushion" for their capitals and liquidity.