FRANKFURT (Reuters) – European Union member states will soon decide on a backstop for the EU bank rescue fund, the chairwoman of the Single Resolution Board (SRB) said in a newspaper interview released ahead of publication on Monday.
“Regardless of who I talk to, nobody says we should reconsider this plan once again,” Elke Koenig told the Frankfurter Allgemeine Zeitung (FAZ).
She said she expected the backstop, needed to increase the financial stability of the bloc’s Single Resolution Fund (SRF), to amount to 60 billion euros ($70.65 billion).
The backstop, part of the EU’s banking union strategy due to be decided on by the end of June, is a credit line which the SRF is meant to receive in case its own means are insufficient.
The SRF is funded by banks in order to supply finance to wind down a lending institution in crisis.
Koenig said she expected the SRF to grow to more than 60 billion euros by 2023 from its current level of 25 billion. Previously, its full size was forecast to be 55 billion euros.
EU leaders want the fund to be well capitalized so it can provide liquidity in the event of a broader banking crisis.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Source: Investing.com