Irish banks may be supervised by ECB

Irish banks will come directly under ECB supervision immediately the new eurozone system comes into force, under new proposals from the European Commission.

The ECB would have wide ranging powers including the ability to shut down banks, carry out raids, fine them up to 10% of their annual turnover for not complying with regulations and require them to hold more capital.

In what Commission president, Jose Manuel Barroso called the first step to creating a banking union, all 6,000 plus credit institutions in the eurozone would on a phased basis come under the supervision of the ECB.