Britain 'unlikely to accept full ECB control of EU banks'

11 September 2012

Britain is unlikely to agree to new proposals that would give the European Central Bank (ECB) increased levels of regulatory control over financiers based out of the eurozone.

That is the opinion of many analysts in the banking industry, who feel countries that are part of the European Union (EU) but not the single currency bloc - such as the UK - will not be willing to hand over complete power to the ECB, Reuters reports.

Under current plans from policymakers on the continent, the central institution will be granted regulatory oversight over all banks in the eurozone as of the beginning of next year, before then having this power extended over EU lenders 12 months later.

However, a source has told the news source that British officials favour keeping this influence with the European Banking Authority (EBA), while also introducing safeguards to stop the ECB from dominating this body.

For instance, one such measure the UK would like to see is the creation of a new panel of "independent experts", who would be able to make recommendations to the EBA in cases of emergency.

By Asim Shah

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