European Commission Seeks Phase-In of ECB Bank Oversight Powers
The European Commission will propose that a plan to hand supervisory powers to the European Central Bank should be phased in gradually, beginning with banks stabilized by the euro area’s rescue funds.
Under the proposal, which will be released on Sept. 12, the ECB would oversee rescued lenders starting on Jan. 1, 2013, said Stefaan De Rynck, a spokesman for Michel Barnier, the EU’s financial services chief.
The central bank’s supervisory role would be extended on July 1 of next year to all so-called systemically important banks in the 17-nation euro area, De Rynck said, confirming details given by Barnier in an interview with Sueddeutsche Zeitung.
The final stage would begin on Jan. 1, 2014, when the ECB would start supervising all euro-area banks, De Rynck said. The central bank would delegate day-to-day oversight for most banks to national regulators.
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