European banks mull 20-bln-euro private bailout fund: report

Writing in the Financial Times, UniCredit chief executive Alessandro Profumo, said the 25.2-billion-dollar (31.7-billion-dollar) fund could provide help to European banks in the event of another crisis.

Distressed banks would be able to turn themselves around without state bailouts, Profumo explained.

"With voluntary contributions from the large European cross-border banks -- say, the top 20 -- a European recovery fund could accumulate a significant amount of risk capital (20 billion euros) over a few years," he said.

"The option for authorities to use the fund to stabilise one or a few large, ailing banks could assure the market that a crisis could be contained at an early stage.

"The fund would not require a contribution from member states or European authorities."

Profumo has already pushed the plan with other leading eurozone banks, including Deutsche Bank and Santander, and will promote the idea to others in coming weeks, the report said.