EU supervisor should concentrate on Major banks

As per reports, it has been recommended that the new supervisory body with the European Central Bank should only focus on those financial institutions that pose maximum risk to the financial system.

The recommendation was provided by a German government official in Berlin. He said that it is not feasible that one authority can look-over as many as 6,000 banks and that too with same concentration. So, it will be that they look at major banks.

It is expected that the new banking system will be introduced by the 27-nation European Union by the start of 2013. Now, when this matter is being discussed, it is said that not all the officials are in favor that the European supervisor should oversee handful of banks. They want that the authority should supervise all the banks.

They have said so, as there are chances that division in controlling the banks by two different authorities can give birth to class system. In which, it will not be possible to have one and all approach. "The change that we are undertaking is in our view so fundamental that we have said from the very beginning that quality must come before speed", said experts, about the changes that have been proposed.