France eager for eurozone-centric banking regulation

14 June 2012

The European Central Bank (ECB) should have a more prominent role in overseeing the practices of eurozone banks, French officials believe.

Several options have been discussed with regard to how regulatory supervision of financiers in the economic bloc could be improved and strengthened in order to avoid any repeat of its current banking crisis.

Leaders from around the European Union will meet later this month to talk about how better fiscal integration can be introduced, with one suggestion being the accession of more power to the UK-based European Banking Authority.

Meanwhile, in an interview with the Financial Times earlier this week, European Commission president Jose Manuel Barroso indicated that a banking union could be created in the next year or two.

However, sources have told Reuters that Paris wants supervision to remain in the eurozone, with the ECB playing a major role in this process.

"There is no way that France is going to hand power over its banks to an organisation based in London," the insider added.

By Tony Aynsley

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