EU's Barroso Proposes New ECB Powers For Banking Supervision

EU's Barroso Proposes New ECB Powers For Banking Supervision


European Commission President Jos?-Manuel Barroso on Wednesday proposed a single supervisory mechanism for the euro area banks.
The new mechanism will give ultimate supervisory responsibility related to financial stability of all banks in the euro area to the European Central Bank. Nonetheless, national supervisors will continue to play an important role in day-to-day supervision and in preparing and implementing ECB decisions.
Barroso said, "Today, the Commission has presented proposals for a single European supervisory mechanism, a major step to a banking union."
The Commission is proposing to have the single supervisory mechanism in place by January 1, 2013. As a first step, as of January 1, 2013, the ECB will be able to decide to assume full supervisory responsibility over any credit institution.
Finally, the phasing-in period will be completed by January 2014, when the SSM will cover all banks.