On March 20, the European Central Bank (ECB) finalized a deal where they would create a new banking union, and have complete control over all banks in the Eurozone. This new union would allow the central bank to determine the insolvency of any bank facility, and have to the power to bailout, or cease operations of even small or regional banks tied to a sovereign state or country.
European Union negotiators agreed on Thursday to complete Europe’s banking union with a new agency to shut euro zone banks that are too weak to survive and a fund to help cover the costs, according to a draft agreement.
The deal also envisages giving the European Central Bank the primary role in triggering the closure of a bank, making it harder for the new ‘resolution’ agency to do so and limiting the scope for country ministers to challenge such a move. – Economic Times
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