ECB banking supervision remains controversial

The European Central Bank is in charge of the eurozone's financial policy. In future, the ECB is to also provide banking supervision. But is it necessary and realistic to supervise and regulate all of the EU's banks? 

There's no doubt that Europe needs some sort of common banking supervision. The crisis in Spain has once again highlighted that the ailing banks of a country cannot only shake the country's finances but also affect other country's financial institutions.

This is what pushed the EU at its last summit in June to call on the Europen Central Bank to be that supervisor. Many see this, however, as a conflict of interest. What is the ECB to do when it believes taxes have to be raised, but is concerned about banks getting into trouble. Can the ECB shut down banks while, at the same time, it is printing money and flooding the market with cash?

Read more: ECB banking supervision remains controversial | Europe | DW.DE | 24.08.2012