The European Banking Federation (EBF) welcomes the decision made by European Heads of States and Governments last night to empower the European Central Bank to supervise all banks in the Euro area as part of a new Single Supervisory Mechanism.

“The clear commitment of European leaders to maintain the integrity of the Single Market is crucial” declared Guido Ravoet, Chief Executive of the EBF. “This confirmation of the political will of all EU countries’ leaders is an important signal that should help bring European solutions to overcoming the crisis.”

The EBF also supports their agreement to establish a single rulebook underpinning the centralised supervision and notes the political determination to conclude on the new capital requirements by year-end. The Federation remarks on the flexibility given to Member States to set capital rules that have in part been exempted from a single rulebook.

“Clearly, as stated by European leaders themselves, the Single Supervisory Mechanism is a first but essential step toward an integrated framework for financial services”, added Ravoet, “but the remaining steps, in terms of arriving at a single resolution mechanism, are just as ambitious and will require just as much commitment.”