The Parliament and the governments of the European Union have reached a agreement on new legislation for banking supervision. This was announced by the negotiators, including Internal Market Commissioner Michel Barnier.
The agreement found today leaves the banking supervision design defined by the Council substantially unchanged: sole supervision is entrusted to the European Central Bank (in fact to a council created within it) and will concern banks that have assets of at least 30 billion euros or 20% of the country's GDP or that operate in at least two states. The EBA (the European banking authority), which from the sole supervision entrusted to the ECB loses many powers, will have the possibility to harmonize the rules throughout the European Union and to ask for ad hoc stress tests.
"It is a milestone of the banking union - said the commissioner for the internal market Michel Barnier - which will help prevent all banking crises, such as those we have witnessed so far, including Cyprus". The entry into force should be March 1, 2014.
