Friday, December 14, Brussels - the European Council meeting, attended by President Dalia Grybauskaitė, decided to set up a single supervisory mechanism for banks, primarily applicable to the euro zone but also with a possibility for non-euro area countries to join. The European Central Bank will take over the supervision of banks of the member states participating in the mechanism as soon as appropriate practical preparations are completed.
The President noted that the decision on centralized supervision is an important step towards a banking union. The reached agreement will help to address more rapidly the financial problems within the euro zone that also have impact on Lithuania's economy, and will better protect from any possible future shocks.
In the process of developing a single banking supervision scheme Lithuania sought that discrimination is avoided between euro area and non-euro area member states. "A compromise agreement that has been reached covers the issues raised by Lithuania to the extent allowed by the EU Treaty," the President said.
Decisions regarding integrated frameworks for deposit guarantees as well as reform and revival of problem banks still need to be taken. These priority issues are likely to be on the agenda of Lithuania's Presidency of the EU Council.
Last updated 2012.12.14 07:21Back