UPDATE 1-ECB Asmussen says ECB has no target for euro
(Recasts lead, Adds more quotes on resolution fund)
MILAN Oct 25 (Reuters) - The European Central Bank is not concerned about the level of the euro and has no target for the common currency, ECB Executive Board member Joerg Asmussen said on Friday in an interview in an Italian newspaper.
"In nominal and real effective terms, which is what counts most, we are in a range we have seen in the last 10 years," Asmussen told Il Sole 24 Ore.
He said he was not particularly worried about the exchange rate: "It is a concern for me only to the extent it is an element of our inflation forecasting.
"We do not have an explicit target for the exchange rate."
Asked about bank lending to businesses, Asmussen said the ECB's asset review and stress tests for banks would be very important.
"Europe is behind the U.S. ... I believe lending to the real economy will go back to levels we want only when we have clean bank balance sheets," he said.
To complete the roll out of Europe's banking union, Asmussen called for a common resolution mechanism to be funded through a levy on banks.
He acknowledged that it could take years, "let's say 10 years", for this fund to raise enough financial resources.
"In the meantime there should be a ... backstop," Asmussen said, adding that the European Stability Mechanism (ESM) could do the job.
He said a change in the ESM treaty was needed but rejected the idea, supported by Germany, that a backstop would require a change to the European Union Treaty.
"A change in the treaty of the ESM is needed, this is less of a hurdle than modifying European treaties," he said.
"I think this is feasible before the European Parliament comes up for reelection," Asmussen said.
(Reporting by Stephen Jewkes and Francesca Landini; Editing by Catherine Evans)
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