European Union reaches final agreement on bank back-up fund

Wed May 21, 2014 10:07am EDT

* 26 European Union countries rubberstamp fund for failed
banks
    * Fund is part of euro zone's banking union
    * Project to launch in late 2014

    BRUSSELS, May 21 (Reuters) - European Union countries -
except Sweden and the United Kingdom - on Wednesday reached a
final agreement on setting up a common 55 billion euro ($75.3
billion) euro zone back-up fund to help shut down failing banks.
    Europe wrapped up negotiations in late March on establishing
a banking union, with the European Central Bank to take over as
bank watchdog at the end of this year. 
    Under the agreement signed on Wednesday, a back-up fund will
be built up over eight years and reach a target level of at
least 1 percent of banks' covered deposits.
    Levies will be collected from banks nationally and
transferred to the Single Resolution Fund's so-called national
compartments, which will be gradually merged.
 
    For the full text of the Inter-Governmental Agreement on the
SRF see: here
 ($1 = 0.7302 Euros)

 (Reporting by Martin Santa, Editing by John O'Donnell)
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

California state worker Albert Jagow (L) goes over his retirement options with Calpers Retirement Program Specialist JeanAnn Kirkpatrick at the Calpers regional office in Sacramento, California October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker   (UNITED STATES) - RTXPWOZ

How to get out of debt

Financial adviser Eric Brotman offers strategies for cutting debt from student loans and elder care -- and how to avoid money woes in the first place.  Video