EU Deal Reached on Bank Supervisor |


European Union finance ministers reached a landmark deal early Thursday that would bring many of the continent’s banks under a single supervisor, in what governments hope will be a major step toward resolving their three-year-old debt crisis. Ministers said the European Central Bank would start policing the most important and vulnerable banks in the euro zone and other countries that choose to join the new supervisory regime next year. Once it takes over, the ECB will be able to force banks to raise their capital buffers and even shut down unsafe lenders.

This is an important step, centralizing banking control in Brussels. Though there is bound to be dissent amongst member states as to capital buffers and unsafe lending practices.
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China, in Surprising Shift, Takes Steps to Spur Bank Lending –

HONG KONG — Faced with an economy that appears to be slowing faster than economists forecast even a month ago, the Chinese government on Wednesday unexpectedly reversed its yearlong move toward tighter monetary policy and took an important step to encourage banks to resume lending.

The central bank said that commercial banks would be allowed to keep a slightly lower percentage [0.5pc] of their deposits as reserves at the central bank. The change, which will take effect on Monday, means that commercial banks will have more money to lend, which could help to rekindle economic growth and a slumping real estate market.

via China, in Surprising Shift, Takes Steps to Spur Bank Lending –