Dutch banks welcome EU bank supervision deal

The Dutch Banking Association NVB on Thursday welcomed a new EU agreement reached overnight to establish a single bank supervisor in the eurozone Calling the agreement a positive signal, NVD director Wim Mijs said it was "a step in the right direction, a workable compromise." "It is the first step towards a banking union with only one set of rules, without differences between the member states. A single rule book would be a logical consequence. Also, a central resolution fund should arrive in case something would go wrong," Mijs, who is also the chairman of the European Banking Federation, told Xinhua. Under the bank supervision agreement, banks with assets over 30 billion euros (about 39 billion U.S. dollars) or those that represent 20 percent of their national economies will be placed under the direct oversight of the ECB, which can also supervise any other bank it wants within those countries that have agreed to be come under its orbit. In the Netherlands, four banks would be put under the ECB oversight: ING Bank, Rabobank, ABN AMRO and SNS Bank. The remaining small banks would stay under supervision of their current regulators. The supervisory mechanism, composed of the ECB and national authorities, will be be operational on March 1, 2014. "The ECB will also be able to intervene at smaller banks when they deem necessary, so the elaboration of the agreements is crucial," said Mijs. "We have always been in favor of putting all banks under supervision because the past has shown that even a small bank or groups of banks can cause a crisis," Mijs added.