FRANKFURT (MNI) – Berlin and Paris have reached a compromise on a
key stumbling block over which banks should fall under direct European
Central Bank supervision, the German daily Sueddeutsche Zeitung reported
ahead of Wednesday’s meeting of European finance ministers.
According to the newspaper, Germany and France agreed that the ECB
should directly supervise all systemically important banks, as well as
state-supported financial institutions.
The German business daily Handelsblatt reported this could total 60
to 150 banks in Europe. Finance ministers were still discussing whether
the criteria should be banks with more than E30 billion in revenue or
banks whose revenue totalled 20% of a country’s GDP.
The Sueddeutsche Zeitung wrote that smaller banks would still be
monitored by national supervisors, but the ECB would have the right to
give them instructions and take over supervision in certain cases where
it sees fit.
The deal could pave the way for an accord among finance ministers
of the European Union meeting later Wednesday in Brussels, though the
paper said demands by non-euro member states could still scupper the
deal.
Britain, Sweden and the Czech Republic have sought additional
influence over the decisions of the common supervisor.
— Frankfurt bureau: +49 69 720 142; email: frankfurt@mni-news.com —
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