EU deal reached on banking union
EU negotiators have agreed a deal to create a new agency to monitor the health of banks operating in the Eurozone, reports Reuters.
The agency will close banks that are too weak to survive and a fund will also be set up to help cover costs, according to the draft agreement.
All-night talks ended an impasse between the European Parliament and countries in the single currency over the scheme. It marks the second leg of the banking union being completed, following supervision under the European Central Bank (ECB).
Details have been outlined in a draft agreement, confirmed by people involved in the talks who spoke to Reuters.
The created fund, will be built up by levies on banks over eight years, rather than the originally-planned 10. Countries will also be able to share 40 per cent of the fund from its first year.
The ECB will probably have a central role in initialing closures, meaning it's harder for the new agency to do so and restricting the opportunities for country ministers to oppose such moves.