ECB to directly monitor Irish banks in 2014

Ireland’s banks will besupervised directly from Frankfurt by the ECB from next March following agreement on how the first plank of a banking union would operate and paving the way towards EU direct bank recapitalisation.

Irish officials helped broker the deal between the member states, the European Commission and the European Parliament in what is a record for EU legislation of less than nine months from request to agreement.

Welcoming the agreement, Michael Noonan, the finance minister said, “the Single Supervisor is the core element of banking union and a vital step in breaking the vicious link between the banks and the sovereigns. Restoring confidence in the supervision of European banks couldn’t be more important in bringing stability to Europe”.