FRANKFURT – European Central Bank President Mario Draghi called on Thursday for a swift implementation of Europe's plans to establish a bank resolution mechanism to wind down failing banks.
Draghi stressed that a full banking union needs a single supervisory mechanism (SSM), which the ECB is working to get up and running for mid-2014, as well as a single resolution mechanism (SRM).
"The Governing Council emphasizes that the future single supervisory mechanism and the single resolution mechanism are crucial elements for moving towards reintegrating the banking system and therefore require swift implementation," Draghi told a news conference after the ECB's monthly policy-setting meeting.
The ECB is concerned that governments are dragging their feet on setting up the SRM.
It wants a single resolution mechanism in place so that its new supervisory role is backed up by a body that has the power to shut down failing banks.
(Writing by Paul Carrel; Editing by Hugh Lawson)