ECB official: New bank authority ‘indispensable’

FRANKFURT — A European Central Bank official is calling for quick creation of an agency with powers to restructure and wind down busted banks, in an apparent pushback against Germany’s insistence that such fundamental changes should take time.

Benoit Coeure said Thursday in Copenhagen that such an agency was indispensable to ending ‘‘the bailout culture’’ and would spare taxpayers from rescuing troubled banks.

Coeure said the ‘‘resolution’’ agency will be needed as soon as the ECB takes over banking supervision, expected next year. With a Europe-wide deposit guarantee scheme, these measures would form the European Union’s banking union — a key part of the 27-country bloc’s strategy to combat its financial crisis.


Germany has said that a central authority would require changes in the treaty governing the EU. That could take years. Germany is chief financial backer of the rescue loans for ailing governments.