EU finance ministers approve financial supervision overhaul
BRUSSELS. September 7. KAZINFORM European Union (EU) finance ministers on Tuesday approved a plan to overhaul financial supervision across the 27-nation bloc as a key reform in the wake of the financial crisis. Kazinform refers to Xinhua.
The ministers "endorsed an agreement reached with the European Parliament on Sept. 2 on key elements of a reform of the EU framework for supervision of the financial system," they said in a statement after a monthly meeting.
Following months of bargaining, negotiators from EU governments and the European Parliament clinched a political deal last week on the creation of new financial supervisory framework for the EU.
The reform is aimed at establishing pan-EU financial supervision, eliminating deficiencies that were exposed during the financial crisis, especially concerning transnational financial institutions and activities.
It involves the creation both of a European Systemic Risk Board (ESRB), which will provide macro-prudential oversight of the financial system, and three supervisory authorities, which will be responsible to oversee banks, insurance companies and trading on markets respectively.
The European Parliament is expected to approve the reform plan at its plenary meeting later this month. EU finance ministers will formally approve it at a subsequent meeting without further discussion. This will enable the new EU financial supervision architecture to be in place as from the beginning of 2011. Kazinform cites Xinhua. See www.xinhuanet.com .