BRUSSELS, March 20 European Union negotiators
agreed on Thursday to complete Europe's banking union with a new
agency to shut euro zone banks that are too weak to survive and
a fund to help cover the costs, according to a draft agreement.
All-night talks ended a stand-off between the European
Parliament and euro zone countries over the new scheme,
completing the second leg of banking union after supervision by
the European Central Bank.
The details of the compromise are outlined in a draft
agreement and were confirmed by people involved in the talks.
Under the compromise reached, a fund made up by levies on
banks will be built up over eight years, rather than 10 as
originally envisaged. It will also be possible for countries to
share 40 percent of the fund from its first year.
The deal also envisages giving the European Central Bank the
primary role in triggering the closure of a bank, making it
harder for the new 'resolution' agency to do so and limiting the
scope for country ministers to challenge such a move.
(Reporting By Tom Koerkemeier and John O'Donnell; editing by