Reuters - Video

EDITION: U.S. | U.K. | IN

Barack Obama

Europe moves to ECB bank supervision

Friday, Oct 19, 2012 - 02:43

Oct. 19 - European Union leaders agreed on Friday that a single supervisor will take responsibility for overseeing euro zone banks from next year, in a step towards banking union. But obstacles remain, and Germany has voiced concerns about using the euro zone's rescue funds to inject capital directly into struggling banks. Joanna Partridge reports.

▲ Hide Transcript

View Transcript

A decision on banking union - seen as key to resolving the three-year old euro zone debt crisis. European leaders took the first step towards that in Brussels on Friday. They agreed to create a single supervisor to oversee all euro zone banks from 2013. It's not yet clear what powers that supervisor - the ECB - will have, or how many banks it will monitor. But EU officials said 6000 lenders would gradually come under its supervision - the banks receiving state aid going first, followed by the larger cross-border institutions. SOUNDBITE: French President Francois Hollande, saying (French): "This evening, with the banking union, we managed to get back stability and efficient mechanisms necessary for tomorrow to avoid a banking crisis. I think for the markets and public opinion, for all those who are waiting for Europe to get back on track, it was a good evening." The banking supervisor opens the way for the euro zone's rescue fund to inject capital into struggling lenders. But German Chancellor Angela Merkel has already raised new hurdles to using that money to recapitalise banks directly. SOUNDBITE: German Chancellor Angela Merkel, saying (German): "Just getting the finance minister to establish the legal framework quickly is very ambitious. We shouldn't disappoint markets by changing short term announcements again and again." The leaders left one of the trickiest issues to one side - what representation non-euro zone banks will get at the ECB if they join the scheme. Britain, which has Europe's biggest banking sector, and other countries are concerned their banks could end up at a disadvantage. Other obstacles still have to ironed out, but it's the right move for the euro zone, says Angus Cambell from London Capital Spreads. SOUNDBITE: Angus Cambell, London Capital Spreads, saying (English): "Politicians aren't known for moving quickly, so what we have seen is obviously things have taken a very long time, but we have seen gradually movement in the right direction, that's the main thing. Is it too late for these measures? Possibly not." For once, the EU leaders' summit wasn't under heavy pressure from financial markets. Banking union may still be a distant prospect but investors seem to be felling slightly more positive about Europe's progress, even though they are still waiting to see the troika's report on Greece and hear whether Spain is going to request a bailout. Joanna Partridge, Reuters

Europe moves to ECB bank supervision

Friday, Oct 19, 2012 - 02:43

Top News »

Money »

S&P 500 to new record on improving economy S&P 500 to new record on improving economy

Fri, Aug 29, 2014 - (2:31)

Finding meaning in the S&P 500 2000 mark Finding meaning in the S&P 500 2000 mark

Mon, Aug 25, 2014 - (2:35)

S&P falls back from record high S&P falls back from record high

Fri, Aug 22, 2014 - (1:35)

S&P 500 closes at new high S&P 500 closes at new high

Thu, Aug 21, 2014 - (1:24)

S&P 500 just shy of record S&P 500 just shy of record

Wed, Aug 20, 2014 - (2:23)

Apple hits $100 a share Apple hits $100 a share

Tue, Aug 19, 2014 - (2:06)

Nasdaq closes at 14-year high Nasdaq closes at 14-year high

Mon, Aug 18, 2014 - (2:23)

Putin puts Wall Street in buying mood Putin puts Wall Street in buying mood

Thu, Aug 14, 2014 - (2:10)

We've become a promotional culture-RetailMeNot's Bodge We've become a promotional...

Thu, Aug 14, 2014 - (4:39)

The Exchange »

The Exchange: Hot commodity The Exchange: Hot commodity

Wed, Jul 16, 2014 - (9:25)

The Exchange: Constitutional crusade The Exchange: Constitutional crusade

Wed, Jun 25, 2014 - (11:35)

The Exchange: The value of money The Exchange: The value of money

Mon, Jun 02, 2014 - (9:53)

The Exchange: China’s Second Continent The Exchange: China’s Second Continent

Tue, May 27, 2014 - (9:35)

The Exchange: A master of business arts The Exchange: A master of business arts

Thu, May 08, 2014 - (8:24)

The Exchange: America's bankrupt cities The Exchange: America's bankrupt cities

Mon, May 05, 2014 - (8:52)

The Exchange: Let the rocking commence The Exchange: Let the rocking commence

Tue, Apr 08, 2014 - (8:13)

The Exchange: The Moneyball fallacies The Exchange: The Moneyball fallacies

Mon, Mar 24, 2014 - (9:54)

Is doing good a good business? Is doing good a good business?

Mon, Mar 17, 2014 - (7:38)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Moving Pictures »

Images of August Images of August

Fri, Aug 29, 2014 - (1:00)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Wed, Jul 02, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)

World Cup: Around the globe in 50 goals World Cup: Around the globe in 50 goals

Fri, Jun 06, 2014 - (1:08)

VIVID – Sydney’s spectacle of light VIVID – Sydney’s spectacle of light

Fri, May 30, 2014 - (1:37)