A If the plan comes through, by January the ECB will take responsibility for financial stability for all Eurozone banks. That covers closing of failing banks, approving of new banks, and monitoring areas like capital ratios and liquidity levels.
Q Will it actually happen on time?
A The time frame is very ambitious, and the ECB will probably have to take on more staff, but if all countries agree, there is a chance. However, all countries do not agree – Germany, for example, wants to keep national regulators in charge of smaller banks.
Q Will national regulators have a role at all under the Commission’s plans?
A Yes – they will be responsible for consumer protection, as well as using their local knowledge to help the ECB, both to flag up problems and to help the ECB resolve them.