An agreement will be reached by the European Union that will lead to the creation of a new pan-EU supervisory authority which will oversee controls on banks and insurers.
It is hoped that the deal, which must still be approved by European finance ministers and the European Parliament, will help stop a repeat of the financial crisis in which loose supervision of companies was blamed for contributing to problems.
The agreement will also lead to the creation of a European Systemic Risk Board (ESRB) with the task to look out for threats to Europe’s economy from the financial sector. If the agreement is ratified, the new agencies should be launched in January 2011.
