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Draghi says 'significant progress' made on bank deal

Eurozone negotiators reach accord on banking stability

20 March, 18:17
Draghi says 'significant progress' made on bank deal (ANSA) - Brussels, March 20 - "Significant progress" has been made towards a banking union among eurozone nations, including an agency to deal with failing banks, European Central Bank President Mario Draghi said Thursday. The European Union said that measures negotiated during lengthy sessions concluding on Thursday will help to stabilize the banking system.

The measures deal with how best to set up a joint authority among the eurozone memebers that can restructure or even close failing banks.

The new joint authority would be part of the broader banking union system, which is designed to ensure that in the future, if a bank fails it won't threaten financial system stability.

It is also expected to ensure that a country's budget and taxpayers will not be crushed by a bank failure.