ECB says EU bank resolution plans may be too complex, poorly funded

Europe’s latest plans for winding down failing banks may be too complex and inadequately funded, the head of the European Central Bank said on Monday, as euro zone officials race to reach a deal on the thorny issue this week. EU finance ministers want to agree on a blueprint for dealing with failing euro zone lenders before a summit in Brussels on December 19-20, to keep banking union plans on track and help restore confidence in banks after a four-year sovereign debt crisis. But ECB President Mario Draghi questioned the strength of the plans that have emerged. Deep divisions remain, especially over the Single Resolution Fund, the related joint fund that is meant to cover the remaining costs of any bank closures after shareholders, bond holders and even large depositors have been hit.

    

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