EU Finance Ministers Strike Deal on Banking Arrangements

Looking for a coordinated way to handle bank failures

European Union finance ministers on Wednesday struck a deal on a much-awaited scheme to handle bank failures in the region, ahead of EU leaders' summit in Brussels on Thursday.

The ministers agreed to set up a EUR 55 billion-single resolution fund over the next 10 years, financed by bank levies raised at national level. The fund will be backed by a new agency which will decide how to shut down a troubled lender.

During the initial build-up phase of the fund, bridge financing will be available from national sources, backed by bank levies, or from the European Stability Mechanism, according to existing procedures, a statement from the Ecofin said.