EU lawmakers back France's Nouy to head new bank supervisor

Frenchwoman Daniele Nouy won approval Wednesday from the European Parliament to head the eurozone's new bank supervisor, a key element in efforts to prevent failing lenders bringing down the economy. "Excellent news, (there is) a lot to be done for a fully-fledged Banking Union," Parliament head Martin Schulz said in a tweeted message. The 63-year-old Nouy, a senior official at the Bank of France, will head the Single Supervisory Mechanism (SSM) under the European Central Bank, directly overseeing some 130 of the eurozone's largest banks. The SSM will also work through member states to ensure that their banks have enough capital to stand on their own two feet and to identify problems before they get too serious. The SSM, plus a Single Resolution Mechanism to wind up failing banks and a deposit guarantee system to reassure savers their money is safe, will form the Banking Union which is meant to police a reformed and strengthened banking system. Nouy has built her career in bank regulation and should take up her new post in January. The ECB wants the agreed SSM and the still-to-be-finalised SRM to start work together at the end of next year. On Tuesday, EU finance ministers failed to reach agreement on how the SRM will function, with Germany pressing for control by member states and France supporting control by the European Commission.