FRANKFURT (MNI) – The creation of a banking union is key to
overcome the flaws of the European currency union, European Central Bank
Vice-President Vitor Constancio said on Wednesday at the ECB’s
Macro-prudential Research Network conference.
“The lessons from the crisis indicate that the creation of a
banking union is essential to overcome some of the shortcomings…in the
design of the monetary union,” Constancio said.
The banking union primarily needs “some sort of European level
supervision plus a European level resolution fund. These two things are
close together,” he said.
“The ideal model would have to have a European FDIC [deposit
insurance fund],” Constancio said. But Europe remains “far away” from
that, he added, and it can wait since it “is not as important as the
other two elements in my view.”
–Frankfurt bureau tel.: +49-69-720 142 Email: jtreeck@mni-new.com
[TOPICS: MT$$$$,M$X$$$,M$$EC$,MGX$$$,M$$CR$]
