Hopes dampened over European bank supervisor

Germany’s finance minister has said a new Europe-wide banking supervisor is unlikely to be up and running in the new year, dampening hopes that stressed banks could soon tap available rescue funds directly.

The European Commission will make proposals for a new supervisory system on September 12. Internal market commissioner Michel Barnier said last week he hopes it could be phased in starting next January and be extended to all banks in the eurozone at the beginning of 2014.