Brussels unveils new banking plan

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Brussels unveils new banking plan

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The EU Commission has unveiled sweeping plans for the European Central Bank to supervise all of the eurozone’s banking system.

The reforms, which still need approval from member states, would give the ECB responsibility for the bloc’s 6,000 or so financial institutions.

In Strasbourg, the EU’s financial services chief Michel Barnier said he hoped the new system would be up and running soon.

‘‘When? After the text is approved we hope things will be in place before the end of the year and that the European Central Bank will have the power to directly supervise any banks that it believes are at risk,’‘ Barnier said.

The move is seen as a key step to creating a banking union in Europe, often regarded as one of the cornerstones for full fiscal integration.

But the Commission could face opposition. Both Berlin and London have raised objections to handing over so much oversight to the ECB.