SANTIAGO, Chile (AP) — IMF chief Christine Lagarde is praising a deal signed by European Union governments to create a single supervisor for their banks.
The managing director of the International Monetary Fund said on Thursday that "very significant progress" has been made toward creating banking unity and reinforcing the Euro zone. She spoke at a news conference in the Chilean capital of Santiago.
Under the deal, banks with more than €30 billion ($39 billion) in assets supervised or those that represent a significant proportion of their national economies will be under the oversight of the European Central Bank.
The deal gives the European Central Bank extensive powers, including power to grant and withdraw banking licenses, investigate institutions, and fine banks that fail to abide by the rules.