ECB's Nowotny wants cautious approach to bank supervision

Reuters

European Central Bank Governing Council member Ewald Nowotny called on Friday for a cautious approach to launching a unified banking supervision system in Europe, after European Union leaders took strides towards establishing such a system.

"What I think is sensible is that it is implemented in a serious and cautious way," he told an investment conference without elaborating on a specific timetable.

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European Union leaders took a big step late on Thursday towards establishing a single banking supervisor for the euro zone, agreeing it would enter into force next year, which will open the way for the bloc's rescue fund to inject capital directly into ailing banks.

(Reporting by Michael Shields)