The European Central Bank will start directly supervising the 150 largest banks within the Eurozone and be closely involved in the supervision of other banks from September 2014.
The European Parliament has adopted a legislative package creating European banking supervision. During discussions about the legislative proposals, the European Parliament stipulated that the ECB would operate more transparently and with more accountability than it does when performing its monetary tasks.
In addition to the ECB’s supervision, the European has proposed a single resolution mechanism for the banking union. This should ensure that if an ECB-supervised bank nonetheless faced difficulties, its resolution could be managed efficiently with minimal costs to taxpayers and the real economy.