On Wednesday, the European Commission suggested to make an agency that would recover or close failed banks. However, the lack of an immediate backstop reserve that would pay for the proposed plan denoted the struggles that it would go through.

The proposed agency was supposed to work in tandem with the European Central Bank which would serve as its supervisor. The agency was also supposed to shut or restore those banks that were in trouble. The new authority would constitute the banking union's second pillar. This was meant to stimulate the response of euro zone with crisis.

If the European Union states agreed to make the agency, it would be launched in 2015. Through the agency, EU would have a way to impose losses on moneylenders.

"We have also seen how the collapse of a major cross-border bank can lead to a complex and confusing situation," the commissioner in charge of regulation, Michel Barnier, stated.

"We need a system which can deliver decisions quickly and efficiently, avoiding doubts on the impact on public finances, and with rules that create certainty in the market."