Extra tools needed for bank resolution funding – EU official

Current €55bn fund may not be enough, says senior manager at Single Resolution Board


Stricken banks in the euro area may require extra funding tools beyond the emergency pot available under Europe’s banking union, a senior official has said.

The Single Resolution Fund is designed to provide liquidity to European banks entering resolution, but in a period of general market stress a large bank could rapidly exhaust this fund, said Gaetan Viallard, a head of unit at the Single Resolution Board.

“If you have a large bank failing, and it has already used its high-quality collateral

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