European Central Bank Executive Board member Joerg Asmussen said the euro area needs a centralized bank resolution authority to break the link between banks and sovereigns, Financial Times Deutschland reported, citing comments made by the central banker at a closed-door meeting in Frankfurt today.
He suggested the authority could wind down struggling banks with funds contributed by the financial sector, according to the report.
Asmussen also proposed a centralized regulator to monitor the 25 most systemically important banks in the currency union, FTD said in excerpts of a report to be published tomorrow.
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