THE finance ministers of the euro area have agreed to place banks in the Euro
area under a single supervisor, a step that would enable European Union leaders
to deliver show of unity at their year-end summit starting from 13th Dec 2012.
It will oxygenate the sinking euro zone infusing fresh blood across all the
arteries of banks ultimately converging and supervised by aorta “ECB”.
This breakthrough gives the European Central Bank the leading supervisory
role over lenders, an agreement that would create true bank supervision in a
move to take concrete steps to maintain the viability of the euro. The accord
would place more than 100 large banks in Europe under the direct supervision of
the central bank leaving thousands of smaller banks primarily overseen by
national regulators.
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