Watch VideoPlay Video
European Union member states and the European Parliament have reached a deal to establish a new financial supervision regime across the 27-nation bloc.
Under the compromise agreement reached late Thursday, three new pan-EU financial watchdogs will be created by the start of next year to oversee banks, insurance companies and market trading. They will have limited powers to overrule decisions made by national regulators. The watchdogs will also have a final say in resolving a dispute between EU member states. The new watchdogs will also be able to monitor how national supervisors implement their obligations under EU law. They will also have the power to investigate specific types of financial institution, financial product, or financial activity, to assess what risks they pose to the market.