Call for banks to put cash aside for failures

BANKS should set aside money to manage future banking failures rather than calling on taxpayers, the European Commission has proposed.

It could be 15 years before a sufficient amount of money has been set aside by the banks in each country and how much they would have to contribute to such a fund has yet to be decided.

Internal Market Commissioner Michel Barnier hopes to win support for the plan from EU member states and from the G20 next month before coming with more detailed proposals for a new crisis management framework in October.