European leaders will confirmed Friday the 24th an ambitious timetable for the completion of a banking union, Europe's biggest project since the euro, and set a December deadline for fleshing out the idea of rewards for structural reforms in the euro zone.
Policy-makers believe a banking union in the 18 countries that will share the euro from next year will help increase the flow of credit, boost growth and help prevent financial crises in the future.
Under the union, the European Central Bank will directly supervise the euro zone's 130 biggest banks from November 2014 and have the power to take over supervision of any of the smaller banks if needed.
Such a Single Supervision Mechanism is to be accompanied by a Single Resolution Mechanism (SRM) - a yet-to-be-created euro zone authority with its own fund that would decide how to wind down or restructure banks that are no longer viable.
Read more: EU leaders to set tight timetable on completing banking union | Reuters
Policy-makers believe a banking union in the 18 countries that will share the euro from next year will help increase the flow of credit, boost growth and help prevent financial crises in the future.
Under the union, the European Central Bank will directly supervise the euro zone's 130 biggest banks from November 2014 and have the power to take over supervision of any of the smaller banks if needed.
Such a Single Supervision Mechanism is to be accompanied by a Single Resolution Mechanism (SRM) - a yet-to-be-created euro zone authority with its own fund that would decide how to wind down or restructure banks that are no longer viable.
Read more: EU leaders to set tight timetable on completing banking union | Reuters
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