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ECB wants a pan-European, not national, bank backstops - Mersch
January 15, 2014 / 1:36 PM / 4 years ago

ECB wants a pan-European, not national, bank backstops - Mersch

SAARBRUECKEN, Germany, Jan 15 (Reuters) - 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 Saarbruecken. (Reporting by Sakari Suoninen; Writing by Paul Carrel)

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