You are here: Home » Reuters » News
Business Standard

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

Reuters  |  FRANKFURT 

(Reuters) - renewed his call for a common bank 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 scheme, we should not be held back by the distinction between risk reduction and risk sharing," told the European Parliament's committee on economic affairs.

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.

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

(Reporting by Balazs Koranyi; Editing by Francesco Canepa)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, July 09 2018. 18:54 IST