Germany's Scholz calls for banking union in Europe

A central element of the plan, however, a joint deposit protection scheme, has not been agreed in the face of German opposition. German Finance Minister Lindner called for progress in the capital markets union to improve business' financing possibilities, with a focus on the instrument of securitization, the pooling of assets so that they can be repackaged and sold to investors.

German Chancellor Olaf Scholz on Tuesday called for the completion of a European banking union, calling it a 'priority' and urging more uniformity in financial markets across the region.

Banking union is a project designed after the financial crisis to centralize supervision of big lenders at the European Central Bank. A central element of the plan, however, a joint deposit protection scheme, has not been agreed in the face of German opposition.

German Finance Minister Lindner called for progress in the capital markets union to improve business' financing possibilities, with a focus on the instrument of securitization, the pooling of assets so that they can be repackaged and sold to investors. "Securitization is much less in our everyday economic life than is possible and necessary," Lindner said, adding that the capital markets union will be working on this instrument in the coming weeks and months.

(Reporting John O'Donnell and Maria Martinez, editing by Tom Sims and Miranda Murray)

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