ECB to get supervision of all banks after phase-in - newspaper
BRUSSELS, Sept 7 |
BRUSSELS, Sept 7 (Reuters) - The European Central Bank will have full supervisory power over all euro zone banks from January 1, 2014, according to a draft European Commission proposal published by Italy's Il Sole 24 Ore newspaper on Friday.
"The ECB should be able to exercise supervisory tasks in relation to all banks," officials write in the draft, a copy of which was posted on the internet.
"Safety and soundness of large banks is essential to ensure the stability of the financial system. However, recent experience shows that smaller banks can also pose a threat to financial stability."
The Commission is firm in believing that the ECB should have oversight of all 6,000 euro zone banks as it looks to build a 'banking union' across the region, the first step towards deeper fiscal and economic integration.
But Germany has said it believes the ECB should only have oversight of the largest, systemically important banks, concerned that having too much responsibility will dilute its monitoring powers. Germany is also concerned that its Landesbanken regional banks could fall under the ECB's watch.
The draft said the ECB would start the process of overseeing euro zone banks from January 1, 2013, with a year long phase-in.
"The phasing-in process should be completed within one year from the entry into force of this regulation at the latest," the document said.
"The ECB shall assume in full the tasks conferred on it by this regulation on Jan. 1 2014 at the latest."
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