BRUSSELS, Oct 2 (Reuters) – An EU advisory group will on
Tuesday recommend reforms that could include splitting banks’
retail business from their investment operations to protect
savers and host nations from the kind of risk-taking that
triggered the financial crisis.
Bank of Finland Governor Erkki Liikanen, who led the group
of academics and experts set up by the European Commission, will
announce their verdict on how best to reform bank structures in
the wake of the crisis that began five years ago.
BRUSSELS (Reuters) – Experts may recommend this week that European banks should separate retail banking from their riskier investment arms to make them safer and soften the impact of financial crises.
But European Union regulators are unlikely to pursue such a radical reform at a time when they are trying to build a banking union to underpin the euro currency and the financial sector.
BRUSSELS (Reuters) – Plans to create a European banking union risks a supervisory split between countries in the euro zone and those outside, Europe’s top bank regulator said on Wednesday, warning of his concerns about the latest plan to tackle the financial crisis.
Last week, the European Commission unveiled plans for the European Central Bank to supervise all euro zone banks as an initial step towards a banking union, a proposal that has divided opinion within the euro zone and worried neighboring states who fear their banks will be indirectly affected.
BRUSSELS, Sept 18 (Reuters) – Concerns are growing among
European investors and lawmakers that plans for a eurozone
banking union will end up half-baked, with the financial
backstops required to underpin the ambitious scheme unlikely to
be in place for years.
Differences of opinion over what precisely is needed to
create a banking union among the eurozone’s 17 countries and
other EU states that decide to join were on display at a finance
ministers’ meeting in Cyprus last weekend.
NICOSIA, Sept 15 (Reuters) – Handing bank oversight to the
European Central Bank is not in itself sufficient to allow the
euro zone’s rescue fund to directly assist banks, Germany’s
Finance Minister said, warning he expected no such deal on
supervision in 2012.
Wolfgang Schaeuble made the comments after talks between EU
finance ministers on Saturday exposed deep divisions about a
proposed banking union. That may disappoint investors who had
been pinning hopes on a pledge by euro zone leaders to agree
sweeping new powers for the ECB in 2012.
NICOSIA, Sept 15 (Reuters) – German reticence over how fast
to centralise banking supervision in Europe stoked tensions with
France on Saturday, which urged prompt implementation of a plan
designed to tackle the financial crisis and help underpin the
The reform, which needs to be approved by the European
Union’s 27 member states, aims to break the link between
struggling banks and indebted governments, an interdependence
that has exacerbated the region’s debt crisis.
NICOSIA (Reuters) – The International Monetary Fund and the European Commission backed Ireland’s calls on Friday to lighten the cost of its bank bailout, a move they hope will bolster the island’s borrowing prospects and help wean it off international support.
Debt-laden Ireland wants the terms tied to up to 31 billion euros of IOUs pumped into two failed banks eased, and for the euro zone’s rescue fund, the European Stability Mechanism, to take over Dublin’s stakes in other lenders.
BRUSSELS (Reuters) – The European Union will insist on higher reserves from banks and impose stricter oversight to protect taxpayers and savers from further bailouts caused by risk-taking, but will not break them up to separate investment banking from retail activities.
While there may be public backing for such a move, EU officials and banking experts said the splitting up of banks to lessen risks to the general public across the European Union would be too complex to achieve in the short term.
BRUSSELS/LONDON (Reuters) – The European Central Bank should have power to police, penalise and even close banks across the euro zone, the European Commission will say next week when it fleshes out plans for a banking union to tackle the region’s debt crisis.
The move is part of wider efforts to prevent problem banks, such as Spain’s Bankia, from sucking weak euro zone countries deeper into the crisis as they borrow to finance bailouts and is a step towards the economic integration needed to secure the single currency’s future.
BRUSSELS/LONDON, Aug 1 (Reuters) – The European Central
Bank’s watchdog for banks could get the power to order the
closure of lenders in what would be a radical step to tackle the
crisis, prompting concerns by policymakers that such
responsibility could backfire.
The plan remains subject to intense debate between the ECB,
the European Commission and member states, but officials and
policymakers who spoke to Reuters have outlined a framework of
how an ECB-sponsored uber-watchdog could work.