FRANKFURT Feb 28 The new banking supervision
housed in the European Central Bank must be accompanied by a
single mechanism to deal with failing banks, ECB Executive Board
member Sabine Lautenschlaeger said on Friday.
From November, the ECB will supervise directly around 130 of
the bloc's top lenders as part the European banking union that
aims to create a more level playing to make banks more resilient
for future crisis.
The rest of the roughly 6,000 euro zone banks will remain
under the brief of national supervisors, though the ECB will
have powers to intervene if it deems necessary.
EU countries and the bloc's parliament are attempting to
seal final agreement on a scheme to tackle failed banks within
the coming weeks. Time is running out with the parliament due to
disband shortly before elections in May.
Lautenschlaeger said in a panel discussion at a Bundesbank
conference that a bank resolution mechanism needed to be
established over the next couple of years, "because one cannot
do European supervision and promote resolution on national
levels. That's is simply a no-go".
(Reporting by Eva Taylor and Sakari Suoninen)