EU lawmakers back central bank oversight

AP News
Posted: Sep 12, 2013 7:25 AM

BRUSSELS (AP) — European lawmakers approved legislation to establish centralized oversight of the region's largest banks.

The European Parliament's vote Thursday to set up the so-called single supervisory mechanism is the first of three pillars of the European Union's planned banking union.

However, the remaining elements — a joint deposit guarantee and an authority to restructure or wind down banks complete with a common backstop — are still far from settled.

The oversight, due to be up and running late next year, is intended to help head off future global financial crises such as the one touched off five years ago by the collapse of Lehman Brothers.