Asmussen wants ECB to decide alone which banks not viable
FRANKFURT, Sept 4
FRANKFURT, Sept 4 (Reuters) - The European Central Bank should have exclusive power to decide which banks in Europe are no longer viable and should be wound down, ECB Executive Board member Joerg Asmussen said on Wednesday.
European efforts to create a banking union with a joint supervisor and a resolution authority for winding up zombie banks have slowed as governments squabble over the design of the plan, and the costs attached.
Asmussen said a single resolution mechanism was just as important as the creation of a single supervisor, a responsibility the ECB is set to take on.
While he welcomed a European Commission proposal for a resolution mechanism to begin work in 2015, he said there was a need to improve who decided that a bank is no longer viable.
"In my view such a decision should be made exclusively and only by the banking supervisory, so in the future the ECB," Asmussen said in a speech to a banking conference in Frankfurt.
If the European Parliament backs a law next week on joint banking supervision, Asmussen said he expected the ECB could begin its new task in the autumn of next year.
He expected 1,000 people to work on banking supervision, with the ECB directly supervising 130 banks holding 85 percent of the banking assets in the euro zone. (Reporting by Eva Taylor, writing by Paul Carrel)
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