FRANKFURT Jan 22 Europe should accelerate the
buildup of its planned bank resolution fund and aim for five
rather than ten years, European Central Bank executive board
member Benoit Coeure said on Wednesday.
The European Union's blueprint to close failing banks
features a single resolution fund that banks will pay into over
the next ten years, giving roughly 55 billion euros ($75
But Coeure said the single resolution fund (SRF) should be
build up faster than that.
"Robust and common resolution financing arrangements are
also required: in this regard, the period of ten years for
moving towards a genuinely common SRF is too long and should be
shortened, possibly to five years," Coeure said in the text of a
speech to be given at an EU conference.
Adequate backstops have to established for both the
transition period and when the fund is in full working order,
Coeure, whose portfolio at the ECB's executive board
includes market operations, also said financial market
fragmentation had "significantly" receded in the euro zone.
Inflation at too low levels was as bad as too high
inflation, he also said. In December, euro zone annual inflation
was 0.8 percent, well below the central bank's target of just
below 2 percent.
($1 = 0.7383 euros)
(Reporting by Sakari Suoninen)