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EU ministers inch towards "banking union"

English.news.cn   2013-12-11 18:33:12            

BRUSSELS, Dec. 11 (Xinhua) -- European Union (EU) Finance Ministers on Tuesday edged closer towards an agreement on a "banking union" designed to close down failed banks in order to prevent banking crises.

"We have no formal result in our pocket or on the table, but we made a huge leap forward in defining the concrete directions and schemes," said Lithuanian Finance Minister Rimantas Sadzius, referring to the so-called Single Resolution Mechanism (SRM), which would step in to close a bank at risk before it could do too much damage to the wider economy.

According to a draft paper discussed at the meeting, the policy makers detailed resolutions on dealing with stricken banks in the EU, including the sale of business, establishment of a bridge institution, asset separation and bail-in measures.

However, the draft paper did not provide information about who decides to launch the measures and where the bail-in funds would come from, casting a shadow over finalization of the SRM.

The talks left more details to be worked out at the next finance ministers meeting on Dec. 18, before a summit of EU prime ministers and presidents, which is supposed to seal the entire deal.

Editor: Zhu Ningzhu
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