Resolution body must be able to act quickly, says ECB executive

European Central Bank executive board member Joerg Asmussen has said a future body to handle failing banks must be able to act rapidly in cases of financial turmoil.

“It has to be in a position to take decisions quickly, if needed during a weekend,” Asmussen said during a speech in Berlin yesterday. “The regulation authority must be established quickly. That means there is no time to wait for a treaty change to establish a new institution. The new authority must take a European perspective on financial stability.”

On its website, the ECB called for the future Single Resolution Mechanism to be based around a “strong and independent” authority with a central fund.