A top European Central Bank officials says the 17 countries that use the euro need an "urgent overhaul" of their banking and financial system to deal with the debt crisis.

Peter Praet says that the crisis has been reversing much of the financial integration brought about by the euro, with bond and money markets now charging some countries much higher interest premiums for added perceived risk.

He called for a eurozone-wide banking regulator with the money and authority to restructure banks operating across borders. Right now national banking regulators have been slow to force shaky banks to restructure. Fears of heavy bank losses are a key part of the eurozone crisis.

Praet also called for a eurozone-wide deposit insurance program similar to the U.S. Federal Deposit Insurance Corporation, the Associated Press reported.