Germany: EU supervisor should focus on big banks

[August 31, 2012]  BERLIN (AP) -- Germany's finance minister says a new European banking supervisor should focus on major banks that pose a potential systemic risk, arguing it couldn't effectively oversee all the eurozone's lenders.me

Wolfgang Schaeuble wrote in Friday's edition of the Financial Times: "it is crucial that the new system be truly effective."

He says efforts should focus on "banks that can pose a systemic risk at a European level."

Schaeuble says it's "common sense; we cannot expect a European watchdog to supervise directly all of the region's lenders -- 6,000 in the eurozone alone -- effectively."

That could put Berlin at odds with the EU's executive Commission, which issues proposals for the new system in mid-September. Internal-market commissioner Michel Barnier wants all eurozone banks centrally supervised by the European Central Bank.

[Associated Press]

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.