February 7, 2013 / 8:11 AM / 5 years ago

Essential to agree on resolution mechanism this year-Coeure

FRANKFURT, Feb 7 (Reuters) - European Central Bank Executive Board member Benoit Coeure pushed for a swift further development of the euro zone’s Banking union and said it is essential to agree on the second pillar, the resolution mechanism, this year.

The euro zone took the first step towards a banking union in December when ministers agreed to create a Single Supervision Mechanism (SSM) for euro zone banks, under which national supervisors cede some powers to the ECB.

In a guest column published in German financial daily Handelsblatt on Thursday, Coeure said the second step, a resolution mechanism, was key to protect tax payers from having to stand in for banks’ risky behaviour in future: “It is essential to come to an agreement on this second element of the banking union this year.”

Reporting By Eva Kuehnen

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