ECB's Mersch calls for a joint European bank resolution scheme

FXstreet.com (Łódź) - ECB Executive Board member Yves Mersch suggested on Wednesday that national backstops for failing EU financial institutions were insufficient and that a common European mechanism for resolving them should be set up.

Speaking in Saarbruecken, Germany, Mersch said that a single fund should be created to tackle failing banks. He also reiterated that monetary policy alone couldn't solve the crisis in the Eurozone.

Ever since the beginning of talks on the bank-failure plan for the euro area, Germany has been firmly opposing the possibility of using Eurozone funds for bailing out distressed lenders.