Banks should pay for winding down their failing peers but sometimes taxpayer money may also be needed in this process, European Central Bank Vice President Vitor Constancio said on Tuesday.

  • may be a need for “temporary use of public money when, for example, a bridge bank needs to be created
  • public money should be in the form “of credit lines that need to be repaid later on
  • banks should be the first line of funding for any bank resolution schemes.
  • banking union project did not necessarily need to involve a joint deposit guarantee agency from the beginning

From Reuters