The plans include allowing financial regulators to take a more aggressive approach in the running of banks as firms’ stability worsens, as well as forcing banks to draw up explicit “recovery” and “resolution” plans in the event of their finances deteriorating.
It is also suggested that a sale of a bank and its assets can be forced for the benefit of customers, overriding the interests of creditors or shareholders.
However, new legislation is unlikely to came into force before 2014 at the earliest.
With speculation growing that Spanish banks, and possibly those in Cyprus, will need support very soon, that would be too late to protect taxpayers from shouldering the burden.
Spain is trying to find more than 80bn euros to bolster its banks’ reserves.
On Tuesday, Spain’s finance minister said the credit markets were “effectively shut” to his country.
Cristobal Montoro told Spain’s Onda Cero radio “the door to markets is not open for Spain”.
A key test will come on Thursday, with Spain due to auction up to 2bn euros of bonds.
Meanwhile, on Wednesday Moody’s cut its risk rating for several German and Austrian banks, including Commerzbank.
Moody’s said German lenders face risks to the quality of their assets if the eurozone crisis deepens or the global economy slows more, but also noted the relative strength of the German and Austrian economies.