FRANKFURT (MNI) – The Eurozone needs a common bank supervisor and
resolution fund to allow it to reap the full benefits of financial
integration, European Central Bank Vice President Vitor Constancio said
Thursday at an ECB conference on financial integration and stability.
Policy-makers have already initiated a number of key initiatives
that should help ensure further financial integration in the future,
Constancio said, citing reforms on economic governance, the fiscal
compact and larger financial backstops.
“Looking forward there is something that is still missing in this
set of reforms – the element of banking union in the process of monetary
union that we have started. We have talked a lot about the embryonic
fiscal union…but there is an element that is in a way still
undeveloped which has to do with banking union,” Constancio said.
“We cannot have financial integration and reap the benefits of
financial integration if at the same time we don’t make sure that the
banking sector is regulated, is supervised, is resolved in a European
perspective,” he continued.
The Eurozone needs cross-border banking institutions, cross-border
supervision, as well as a common European resolution fund, Constancio
said.
–Frankfurt newsroom +49 69 72 01 42; e-mail jtreeck@marketnews.com
[TOPICS: MT$$$$,M$$EC$,M$X$$$,M$$CR$,MGX$$$]