European Central Bank president Mario Draghi urged eurozone governments on Tuesday to take further action to shore up the region's banking sector, including by creating a common insurance plan for bank deposits.

Speaking in Paris, Mr. Draghi said that while European governments had built a single system for supervising banks and managing bank failures in recent years, "more needs to be done."

In particular, governments should harmonize the bloc's rules on how to treat bank liquidity, complete the common resolution system, and lay "the groundwork for the creation of an effective deposit insurance," he said.

"I am confident that significant steps in this direction will soon be taken," Mr. Draghi said.

Source : Market Watch