Mersch, Constancio to lead ECB bank union work

FRANKFURT Tue Dec 18, 2012 10:46am EST

Related Topics

FRANKFURT Dec 18 (Reuters) - New Executive Board member Yves Mersch will work jointly with the European Central Bank's vice president, Vitor Constancio, on the fledgling euro zone banking union, the ECB said on Tuesday.

Mersch joined the ECB's six-member Executive Board this week, beginning an eight-year term. His previous role as Luxembourg's central bank chief had already made him a member of the ECB's broader policymaking Governing Council.

Under a landmark deal last week, the ECB will have new powers from 2014 that will give it automatic oversight of around 150 of the euro zone's 6,000-odd banks, and the authority to intervene in smaller banks if there are signs of trouble.

The establishment of this single supervisory mechanism is a first step towards a banking union that will lay a cornerstone for closer economic integration.

For an ECB statement on the division of responsibilities on the board, click:

here

(Writing by Paul Carrel)

FILED UNDER: