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.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.