Eurozone Ministers Agree on Bail-out Banking Deal

December 19, 2013 Share Print 0

Eurozone finance ministers have agreed on a long-awaited pact on how to deal with failing banks in the region.

It aims to create a 55bn euro ($75bn; £46bn) fund – financed by the banking industry, over the next 10 years.

The fund would be backed by a new agency, which will decide on how to deal with failing banks.

European leaders – who meet at a summit on Thursday and Friday – want to sign off on a deal so that this banking union can start in 2015.

The deal is part of wider efforts by the region’s economies towards building a banking union as they look to avoid taxpayer-funded bank bailouts.

However, there is still disagreement over how banks will be wound up or re-capitalised in the early years while the new arrangements for banking union are taking shape.

via BBC News – Eurozone ministers agree banking deal

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.