On 19 March, the Irish Presidency reached provisional agreement with the European Parliament on the single EU Bank Supervisor. This is seen as a major step towards banking union as well as restoring confidence in the European banking system and building stability across Europe. The establishment of the supervisor will pave the way for the European Stability Mechanism (ESM) to take on the direct recapitalisation of banks. The European Banking Federation has welcomed the agreement and issued a statement saying that it believed that this is a central element within the effort to achieve financial stability. However, the EBF stressed that there is an imperative need to clarify without delay the practical details of the proposal which would make it very clear to the supervised banks who is the main supervisor inside the mechanism of central and local co-operation.