(Eurozone) Banking union is a priority, says IMF
Source: Financial Times
The International Monetary Fund has called on the eurozone to make banking union its priority.
The IMF said on Wednesday that a credible road map towards a common supervisory framework, deposit guarantee scheme and bank resolution authority were needed to stop shocks hitting one eurozone member from imperilling the entire bloc.
“The immediate priority for the eurozone is to establish a banking union and move toward more fiscal integration,” said Mahmood Pradhan, a deputy director in the IMF’s European department and mission chief for the euro area.
The IMF warns in a report that the lack of a banking union means the pernicious link between the poor financial health of governments and the instability of the region’s banking system is “stronger than ever”.
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