Bank supervisory mechanism deal due

An agreement on a single supervisory mechanism is scheduled to be agreed by the end of this year with legislation due to be put in place before the European Parliament breaks up for elections next year, according to Frank Smets, director general of research at the ECB.

However, there is still differences between EU leaders on who ultimately bears the responsibility for winding down a bank. The ECB and Commission as well as France, Italy and Spain, want a common resolution fund in order to backstop the losses of a failing bank.

However, Germany is insisting that national governments should take responsibility for banks within their borders.