LONDON Dec 13 The EU needs to quickly push
through the next phase of its banking union, following a
landmark agreement on the first stage towards a more pooled
sovereignty, ECB President Mario Draghi said in the Financial
Times on Thursday.
EU finance ministers agreed on Thursday, after marathon
overnight talks, to create a single banking mechanism (SSM) for
the euro zone and like-minded countries.
The next phase of creating a full banking union would
require an agreement on a common resolution authority to oversee
the orderly winding down of insolvent lenders.
"A European resolution authority is an important complement
to the SSM and it will probably be in place by the time the SSM
takes up its responsibilities," Draghi said in an article
published on the FT's website.
The ECB expects to take a year to prepare itself to assume
responsibility for supervising lenders with assets of more than
30 billion euros ($39 billion).
Draghi said the SSM would, in effect, shame local
supervisors and national governments into taking action, if
Europe's leaders were not able to quickly agree on the next
phase of the banking union.
"Even in (the resolution mechanism's) absence, the single
supervisor's assessment of the possible non-viability of a bank
would be such a strong statement that it would likely trigger
the national government's policy response," he said.