Bank regulators in eurozone countries will be asked to agree to relinquish their powers to the European Central Bank (ECB) in three months’ time, according to documents leaked from Brussels.
by Louise Armitstead, Chief Business Correspondent
The European Commission (EC) wants to give the ECB supervisory power over 6,000 eurozone banks as the first move in a rapid advance toward banking and then fiscal union.
The documents, that were due to be unveiled on Wednesday, reveal highly anticipated plans for Europe’s “bank union”. The ECB will have the power to wind up banks; remove bank licenses; and force recapitalisation programmes when it think it’s necessary, according to the documents.
The ECB will also be empowered to “enter into administrative arrangements” with regulators outside the eurozone – or act and negotiate on behalf of all members in talks on global financial regulation.