BRUSSELS/FRANKFURT, Nov 19 (Reuters) – The European Central
Bank on Monday said that it should have the power to supervise
all lenders in a banking union, a demand the president of
Germany’s influential Bundesbank was quick to temper.
After three years of piecemeal crisis-fighting, European
countries are attempting to agree on a banking union to lay a
cornerstone of wider economic integration and protect the euro.
BRUSSELS, Nov 18 (Reuters) – The system of so-called “shadow
banking,” blamed by some for aggravating the global financial
crisis, grew to a new high of $67 trillion globally last year, a
top regulatory group said, calling for tighter control of the
A report by the Financial Stability Board (FSB) on Sunday
appeared to confirm fears among policymakers that shadow banking
is set to thrive, beyond the reach of a regulatory net
tightening around traditional banks and banking activities.
BRUSSELS (Reuters) – Divisions in Europe over a new regime to supervise banks overshadowed fresh attempts by EU finance ministers on Tuesday to agree a centrepiece reform that some officials fear could now unravel.
So far, countries in the euro zone have attempted to contain the financial crisis with piecemeal measures. The banking union would be a cornerstone of wider economic union and the first concerted attempt to integrate the bloc’s response to problem lenders to win back confidence.
BRUSSELS, Nov 13 (Reuters) – EU finance ministers will seek
on Tuesday to break an impasse over a new regime to supervise
banks, but with much of the plan contested and time running
short to agree, the European Union risks seeing this centrepiece
So far, countries in the euro zone have attempted to contain
the financial crisis with piecemeal measures. The banking union
is the first concerted attempt to integrate the bloc’s response
to problem lenders to win back confidence.
BRUSSELS (Reuters) – The longer it takes to agree further aid for Athens, the more damage is done to the Greek economy, a senior bank industry representative has warned, flagging a growing sense of alarm about a renewed threat of default.
“The longer you take over these negotiations about paying financial aid, the longer you starve the economy of the required liquidity,” said Hung Tran, deputy managing director of the Institute of International Finance, a global bank lobby group.
BRUSSELS (Reuters) – European Union countries will consider a proposal this week for an absolute cap on the total bonus paid to bankers, EU officials said on Sunday, a reform Britain is unlikely to support.
The idea to cap total bonus payouts, including share options, at between three and five times salary, will be discussed at a meeting of EU diplomats and lawmakers on Monday alongside a suggestion to limit just the cash bonus bankers receive to the level of their salary, one of the officials said.
BRUSSELS, Nov 7 (Reuters) – A group of AAA-rated euro zone
states, led by Germany, wants limits on the ECB’s remit in a
proposed banking union, possibly undermining a scheme to restore
the currency zone’s stability.
According to a document circulated by Germany, Finland, the
Netherlands and Luxembourg, and seen by Reuters, the four core
euro zone countries advocate stronger powers for local
regulators when it comes to day-to-day oversight of banks in the
banking union scheme.
LONDON/BRUSSELS, Nov 7 (Reuters) – A group representing some
of the world’s most powerful banks has approached the European
Central Bank to seek backing for a new way to calculate the cost
of funding after the Libor rigging scandal, people familiar with
the matter said.
The approach comes as a collapse in interbank lending and
the threat of a regulatory clampdown have put in doubt the
future of such benchmarks, driving a search for different ways
to anchor the price of funding.
BRUSSELS (Reuters) – European Union countries will examine a plan this week to allow the ECB to supervise banks in states outside the euro zone alongside those within the currency area, according to an EU document that lays down limits on the central bank’s role.
Last week, EU leaders agreed to build a new system of supervision led by the European Central Bank, as a step towards a banking union where chiefly euro zone countries would jointly back problem lenders, in a move to underpin the currency.
BRUSSELS (Reuters) – EU leaders have agreed to allow the European Central Bank to supervise banks from next year, but questions remain about how the process will work, which lenders will be involved and whether those in trouble can be helped.
The European Commission has proposed making the ECB responsible for supervision as a step towards a banking union in which euro zone countries and any others that want to join would together resolve problem banks and protect savers’ deposits.