European Commission President Jose Barroso said regulations to create a single bank supervisor at the European Central Bank are proceeding quickly.
“I hope making the final step for formal adoption is a matter of weeks, not months,” he said in the text of a speech to the European Parliament in Strasbourg, France. Parliament members have worked “very efficiently” with the council of European nations to speed up work on the issue, he said today.
The European Central Bank is slated to become the single supervisor for euro-area banks around March 1, 2014, a year after regulations are set to establish oversight operations. The new supervisor is one condition for allowing the 500 billion-euro ($667 billion) European Stability Mechanism to lend directly to banks.
The Brussels-based commission will move swiftly on other banking measures such as capital requirements, deposit-insurance standards and how to handle failing lenders, Barroso said. The commission, the European Union’s executive arm, plans to introduce a proposal on handling failing firms after the single-supervisor regulations are finished, he said.
“The commission will make a formal legislative proposal for a single resolution mechanism in the banking sector before the summer,” Barroso said.