The €10bn Cypriot rescue is a watershed for how the eurozone deals with failing banks, with European leaders now committed to “pushing back the risks” of paying for bank bailouts from taxpayers to private investors, the chairman of the group of eurozone finance ministers has said.

Jeroen Dijsselbloem, president of the eurogroup, was speaking hours after Cyprus reached an 11th-hour €10bn bailout deal with international lenders that avoids a levy on bank accounts but will force large losses on big deposits in the island’s two largest lenders.

European bank stocks and the euro suffered sharp losses following his comments amid concerns over the safety of bank deposits in any future bailouts. The single currency fell more than 1 per cent against the dollar, wiping out all its earlier gains following relief that a deal had been struck in Cyprus.