SAARBRUECKEN, Germany Jan 15 European countries
need to agree on a joint mechanism for tackling troubled banks,
rather than relying on national backstops, European Central Bank
Executive Board member Yves Mersch said on Wednesday.
More than five years since a financial crisis struck, Europe
is crafting its most ambitious reform since the launch of the
euro - an agency and fund to shut problem banks as soon as the
ECB starts to police them later this year.
However, Germany is standing firm against the use of euro
zone money to back a scheme for tackling such troubled banks,
dousing hopes still harboured by its peers that the bloc will
unite behind lenders in difficulty.
"The ECB is of the strong opinion that loose coordination of
national backstops on bank resolution is insufficient," Mersch
said in a panel discussion at the Bundesbank regional office in
(Reporting by Sakari Suoninen; Writing by Paul Carrel)