Arab Today, arab today draghi pushes for bank resolution fund to be operational quicker
Last Updated : GMT 21:00:32
Arab Today, arab today
Arab Today, arab today

Draghi pushes for bank resolution fund to be operational quicker

Arab Today, arab today

Arab Today, arab today Draghi pushes for bank resolution fund to be operational quicker

Brussels - AFP

European Central Bank chief Mario Draghi called Wednesday for a new bank resolution fund to be brought into full operation quicker as debate intensifies over the key element of a new banking union. Eurozone states agreed last December on the outlines of the second element of the new banking union, a so-called single resolution mechanism (SRM) to wind up failing banks. The banking union aims to end the situation where weak banks force states into expensive bailouts and closures, thus triggering a crisis in government finances that can end up with a sovereign bailout as happened in Ireland.   The SRM is to be able to call upon a fund of 55 billion euros ($75 billion), but it is envisaged this bank-funded pot won't be full until 10 years after its planned creation in 2016. Moreover, worried about paying for others' failures, the states agreed the fund would be cantonised into separate pots for each country until 2026. Draghi said that "one issue that creates uncertainty is the protracted time period -- currently 10 years -- over which national compartments are to be mutualised into a single resolution fund." Speaking at the Belgian central bank, Draghi said the ECB's comprehensive review of banks before taking over as their regulator later this year under the first part of the banking union should remove the fear of surprises and makes the 10-year period "unduly long". "We would see merits in doubling the pace of mutualisation to have a genuine European fund within five years." The European Parliament, whose approval is required, has also criticised the long period and has refused to accept the proposal by the states. Time for an agreement is running short before the parliament ends its session ahead of European elections in May. Draghi said another unresolved issue is that of a backstop in case the fund does not have sufficient cash in its coffers. "We believe that a single resolution fund needs a solid public backstop, be it an ability to temporarily borrow from the market backed by guarantees from participating member states, or access to a credit line, potentially from the European Stability Mechanism." Markets are also jittery about where states will find funds to recapitalise weak but viable banks after the ECB completes its review. One possible option is to seek help from the EU's bailout fund, the European Stability Mechanism.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today draghi pushes for bank resolution fund to be operational quicker Arab Today, arab today draghi pushes for bank resolution fund to be operational quicker

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today draghi pushes for bank resolution fund to be operational quicker Arab Today, arab today draghi pushes for bank resolution fund to be operational quicker

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israeli court convicts Palestinians of 2016

GMT 04:39 2017 Tuesday ,17 October

Israeli court convicts Palestinians of 2016
Arab Today, arab today Iran's Facebook shuts down

GMT 23:50 2017 Monday ,16 October

Iran's Facebook shuts down
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Anoshka happy for reactions to her talk show

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show
Arab Today, arab today India to close colonial-era military farms

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:55 2017 Thursday ,12 October

Safaa Sultan happy for “Love School”

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:02 2017 Saturday ,14 October

Conservation cutbacks put Brazil's

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 12:25 2017 Saturday ,14 October

Squeeze on UK health gives advanced

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday