Yves Mersch, an European Central Bank executive board member, called for European authorities to clarify what would happen if the proposed single resolution fund were to be emptied by an "exceptional" round of bank failure.

Mersch told an audience in Frankfurt that it was as equally important to have a single system for resolution as it is to have one for supervision. "Banks need to know how they will be treated both in life and in death – as do the creditors that invest in them," he said.

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