The European Commission is pushing for a coordinated capital injection for banks to shield them from the fallout of a potential Greek default as Germany urges each country to prepare its own blueprint.

The commission, the European Union's executive arm, is "now proposing to the member states to have a coordinated action to recapitalize banks and so to get rid of toxic assets that they may have," President Jose Barroso said today in a video question-and-answer session. He didn't give more details.

Financial shares continued their advance after German Chancellor Angela Merkel fed speculation that euro policy makers are working on plans to boost bank capital. During a visit to Brussels yesterday, Merkel made her most explicit comments yet on banks' role in fighting the crisis, saying that the European rescue fund should only be relied upon as a last resort.