ECB's Draghi pleads with Parliament for euro area deposit insurance

FRANKFURT (Reuters) - European Central Bank President Mario Draghi renewed his call for a common bank deposit insurance scheme for the euro area on Monday, arguing that sharing a risk helps reduce it.

"In the period ahead, including the deliberations on a European deposit insurance scheme, we should not be held back by the distinction between risk reduction and risk sharing," Draghi told the European Parliament's committee on economic affairs.

Draghi said that banks had already substantially cleaned up their balance sheets and sharing the risk now would reduce it further, since it would lead to more orderly and faster bank resolution, which ultimately improves stability.

Germany has long opposed a common deposit insurance scheme, arguing that it could be asked to foot the bill for bank failures in financially irresponsible euro zone member states.

(Reporting by Balazs Koranyi; Editing by Francesco Canepa)