The European Central Bank would have the sole power to grant banking licenses under proposals to give it supervisory powers and build a euro-area banking union, a European Union official said.
The ECB would have a monopoly on granting all bank licenses within the 17-nation euro area under the plan, due to be unveiled on Sept. 12, the official said, speaking on condition of anonymity because the plan isn’t final. Under the proposals, which are being drafted by the European Commission, the ECB would also gain discretion over which banks to supervise directly and when it will delegate day-to-day oversight responsibilities, the official said.
German Finance Minister Wolfgang Schaeuble said the ECB will need to focus its direct oversight on banks that can pose a systemic risk to Europe. He made the comment in an op-ed published today in the Financial Times.