EU agrees new financial supervision framework

[pampango]

Source: BBC

European Union finance ministers have agreed to establish a new framework for financial supervision, designed to help prevent future financial crises.

The measures include a European Systemic Risk Board to oversee the health of Europe's economy. Other supervisory bodies that will oversee banking, financial markets, insurance and pensions were also agreed by the ministers. They include the European Banking Authority, the European Insurance and Occupational Pensions Authority, and the European Securities and Markets Authority.

The Council of the European Union said the European Parliament "is expected" to ratify these bodies later this month. They will then become "operational as planned" from 1 January next year.

Europe's move follows the sweeping Wall Street reforms that President Barack Obama signed into law in July. France, Germany and the UK have already committed to introducing a bank levy, designed to cover the costs of any future financial crises.

Read more: http://www.bbc.co.uk/news/business-11220469