BERLIN – The International Monetary Fund is urging the European Union to move swiftly toward a fully integrated banking sector to stabilize the bloc's financial system.
The IMF said Thursday the 27-member group still faces great challenges "with continuing banking and sovereign debt crises" which require a region-wide solution because of its heavily interconnected banks.
In its first financial stability assessment for the 27-nation bloc, the IMF welcomed this month's EU decision to create a single banking supervisor as "an initial step" but stresses further measures such as a joint deposit guarantee and a joint bank bailout fund are needed.
European policymakers are reluctant to create a full banking union because joint liability implies one country's taxpayers would someday have to bail out struggling banks of another EU country.
Fox News' "Antisemitism Exposed" newsletter brings you stories on the rising anti-Jewish prejudice across the U.S. and the world.