|
|
National supervisors would notify the ECB of a proposed banking acquisition at least 10 days before the deadline for a deal to be completed, according to a compromise plan. The ECB “shall decide whether to oppose the acquisition”, according to the draft measures drawn up by Cyprus, which holds the European Union’s rotating presidency. The proposals would also create a panel in the ECB to review its supervisory decisions. The proposals would also give the ECB powers to require individual banks to raise capital, reduce the riskiness of their activities, and disclose information on how liquid their assets are.
European Central Bank Vice President Vitor Constancio said that a common bank supervisor under its control would need power over all euro-area institutions, countering German Finance Minister Wolfgang Schäuble’s push to limit central oversight to systemically important firms.
The ECB must be able to assert control over all banks in participating countries, even if the system is set up “in a very decentralised way”, Constancio told EU finance chiefs. Luxembourg, Finland and the Netherlands have also sought changes to the EU’s initial plan to grant the ECB broad powers.