ECB's Asmussen: Europe should fix bank liability rules by 2015

BERLIN Mon Nov 4, 2013 7:54am EST

European Central Bank (ECB) executive board member Joerg Asmussen addresses reporters during a news conference after his meeting with Greece's Finance Minister Yannis Stournaras in Athens August 21, 2013. REUTERS/John Kolesidis

European Central Bank (ECB) executive board member Joerg Asmussen addresses reporters during a news conference after his meeting with Greece's Finance Minister Yannis Stournaras in Athens August 21, 2013.

Credit: Reuters/John Kolesidis

BERLIN (Reuters) - Europe should aim to fix liability rules in its new single resolution mechanism (SRM) for failing banks by 2015 rather than by 2018 to avoid uncertainty, European Central Bank Executive Board member Joerg Asmussen said on Monday.

"It would be wise to bring forward the liability rules to January 1, 2015, then it would be clear what laws apply," Asmussen said at an event in Berlin.

Europe is working on the completion of a banking union, its biggest project since the euro, which would include a SRM - a euro zone authority with its own fund that would decide how to wind down or restructure banks that are no longer viable.

(Reporting by Alexandra Hudson; Writing by Sarah Marsh; Editing by Janet Lawrence)

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