Europe Reaches Deal for ECB to Supervise Banks

European finance ministers have reached a deal on rules for supervising eurozone banks, ahead of an EU summit.

Around 200 of the biggest banks will come under the direct oversight of the European Central Bank, which will act as chief supervisor of eurozone banks.

The agreement – a key step towards banking union – will be put before European leaders later on Thursday.

New rules on prudent banking are seen as vital to bolster the euro, as bank failures triggered the financial crash.

The measures are also aimed at preventing banking failures of the type that happened in Greece and Spain ending up on the books of eurozone governments.

Hours afterwards, eurozone finance ministers agreed formally to release a long-delayed instalment of 34bn euros (£27bn; $44bn) over the next few days, with a further 15bn later on. Athens has been waiting for the bailout funding since June.

via BBC

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