FRANKFURT, Oct. 20 (Xinhua) -- Mario Draghi, President of the European Central Bank (ECB), asked the European Commission in a letter to delay the implementation of news rules to bail out bankrupt banks, the German newspaper Die Frankfurter Allgemeine Zeitung reported on Sunday.
Draghi requested that bondholders should be spared any losses in a bank rescue situation until a Europe-wide bank union is fully operational, the report said.
The EU agreed on new bail-in rules of banks earlier this year, according to which bondholders must share losses in a bank failure. Some policymakers have been asking for a quick implementation of the new rules.
Draghi had in principle no objection to imposing losses on bank ceditors, but he feared that this would destabilise markets since the bank union is not yet in place, the report said.
The ECB is expected to take up the supervisory function of the European banks late next year, which means an important step to build up a Europe-wide bank union.
The ECB is now conducting a health check-up review of European banks. Analysts expect that results of this review would reveal capital shortfalls in banks of weaker countries such as Italy.