Cyprus overshadows banking union as ECB prepares for watchdog role

EU lawmakers are set to empower the ECB this week to supervise banks from mid-next year, but they will struggle to reinstate a vision of wider banking union, shaken by a levy imposed on Cypriot savers.

Last year’s agreement among countries to give the European Central Bank new powers to supervise euro zone banks from next year was initially applauded as a first step towards closer integration to help underpin the euro.

via Business feed http://www.scmp.com/business/banking-finance/article/1194414/cyprus-overshadows-banking-union-ecb-prepares-watchdog-role