FRANKFURT, April 25 The European Central Bank
has finalised rules for how it will supervise commercial banks
in the 18-nation euro zone from November, it said on Friday.
The Single Supervisory Mechanism (SSM) framework regulation
gives the central bank wide-ranging powers, including the right
to demand that lenders increase their capital buffers, and
spells out how the SSM will cooperate with national supervisors.
"The SSM Framework Regulation lays the basis for the work of
the SSM when it takes over as supervisor of euro area banks in
November 2014," the ECB said in a statement.
The document also forms the basis for defining which euro
zone banks will qualify for direct supervision by the ECB. Those
that do not match the criteria as outlined in the document will
continue to be supervised by their national authority.
The list will be published in September.
(Reporting by Eva Taylor Editing by Jeremy Gaunt)