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Hard to imagine EU 'bad bank' without common backstops - ECB's Mersch

FILE PHOTO: Yves Mersch, Member of the Executive Board of the European Central Bank presents an oversized newly unveiled 10 euro note at the headquarters of the European Central Bank (ECB) in Frankfurt, January 13, 2014. REUTERS/Ralph Orlowski/File Photo

FRANKFURT (Reuters) - It’s hard to imagine a pan-European bad bank as long as the European Union’s banking union is not complete, including common backstops for protecting depositors and winding down banks, European Central Bank board member Yves Mersch said on Wednesday.

Speaking to an Italian banking conference, Mersch also quashed industry hopes that the ECB would change incoming rules for dealing with loans that go unpaid.

Reporting By Valentina Za; Writing by Francesco Canepa; Editing by Gareth Jones

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