European Parliament: EU seeks progress on bank closure plan

EU finance minister sought progress on the closure of failing banks before it damages the underlying economy.

VILNIUS: EU finance minister on Saturday met to seek progress on the closure of failing banks before it damages the underlying economy. The idea was accepted initially as essential to head off future crises. Dutch Finance Minister Jeroen Dijsselbloem, who is also head of the 17 eurozone finance ministers group insisted that the banking union plan was not being watered down as much progress had been made and has also been approved by the European Parliament. The sticking point now is a proposed Single Resolution Mechanism (SRM) that will work with the Single Supervisory Mechanism (SSM) and in time be followed by Deposit Guarantee System to reassure depositors that their money is safe even at times of stress. German Finance Minister Wolfgang Schaeuble made no comment as he arrived, but said that while the SRM could go ahead initially, a better mechanism would need changes to the EU’s core treaty.

Published in The Express Tribune, September 15^th, 2013.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.