EU set to back new, joint banking supervision

Associated Press

October 15, 2013

(AP) European Union finance ministers are set to give the green light to the creation of a centralized banking supervisor for the bloc.

European Central Bank executive board member Joerg Asmussen said Tuesday in Luxembourg that the decision marks "a very important day" in Europe's quest to stabilize its financial system.

The expected decision by the finance ministers from the 28-country bloc marks the final legal step to the establishment of the new banking supervisor, which will be anchored at the ECB. The so-called single supervisory mechanism is set to be fully operational in a year.

The ministers are also expected to continue a thorny discussion on the establishment of a common fund that will be able to pay for the restructuring or bailouts of troubled banks as a last resort.

Associated Press