The European Commission will make a proposal next year on introducing a joint agency for shoring up or closing troubled banks, Michel Barnier, the European commissioner in charge of financial regulation, said on Monday.

He told reporters that EU leaders would, as agreed, wrap up by year's end a deal to adopt common banking supervision in the euro zone, whose implementation would follow in 2013 and 2014.

It will then move on to plans for a body to tackle banks in difficulty.

"The second stage is a proposal in 2013 for a European resolution agency," he said, adding this would have broad legal powers and work closely with national authorities.

(Reporting by Michael Shields)