(LUXEMBOURG) - Leading officials of the 15-nation eurozone group said Monday that big banks fighting for survival would not be allowed to fail and the money market would be kept flush with central bank cash.

"We have agreed (to assure) that no financial institution of systemic importance should be allowed to fail," said Jean-Claude Juncker, who heads the group of finance ministers from the 15 countries that share the euro.

"We will all take the necessary measures to ensure the stability of the financial system," he told journalists after chairing a meeting in Luxembourg, where he is both premier and finance minister.

Earlier Monday panic swept through the European financial sector as stock markets plunged amid growing concerns about the health of the banking system, following a series of recent state bailouts.

The European banking system slid into crisis over the last two weeks as lending on the interbank credit market all but dried up amid fears about the health of other banks' ability to repay loans.

"We will continue to provide money markets with all the liquidity they need for as long as necessary," European Central Bank President Jean-Claude Trichet said.

As interbank lending gradually slowed to a trickle over the last year, the ECB has regularly pumped billions of euros into the banking system so banks could keep financing their day-to-day business and remain solvent.

"You can tell the citizens that they can count on the European Central Bank," Trichet assured. "You can tell the citizens that they can have confidence (there will be) liquidity."

Earlier Monday, the 27 EU member countries made a joint pledge to protect individual savers and the ailing financial system, despite persisting divisions over whether a US-style bailout fund is needed.

However, fleshing out the details of a coordinated response to the crisis has proven difficult. A number of countries have rushed to upgrade bank deposit guarantees to avoid runs on an already fragile banking system.

Economic and Financial Affairs Council (ECOFIN)

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