EU eager to introduce bank supervisions rules

There is a pressing need to accelerate negotiations so that we can allow the entry into force of the (new mechanisms) early in 2013, spokeswoman Pia Ahrenkilde-Hansen told a regular news briefing, citing intensive work throughout the summer.EU leaders decided in June to move towards more centralised banking supervision as part of a wider agreement on letting the new permanent eurozone rescue fund, the European Stability Mechanism, to aid lenders directly instead of passing funds through governments and adding to state debt.A key element of the debate is whether the Frankfurt-based European Central Bank or the London-based European Banking Authority that takes the lead as the regulator.The ECB will play a central role, particularly for banks operating in the 17-state eurozone, Ahrenkilde-Hansen said.But a balance must also be found for the 10 non-eurozone states, notably the United Kingdom.An EU source who asked not to be identified, said a successful compromise must be found to avoid London insisting on an opt-out.Problems also include who supervises eurozone banks that have interests in non-euro parts of the EU, particularly in London, which is Europes top financial centre.