Business

New EU finance watchdogs ratified

EU flags
Image caption The new bodies will become operational from 1 January 2011

The European Parliament has ratified a law creating new financial oversight institutions, designed to help prevent future banking crises.

New watchdogs for the banking, financial markets, insurance and pensions sectors will be set up, in addition to a European board to oversee the health of Europe's economy.

They will become active at the beginning of next year.

European Union member states had already backed the plan.

The new framework for financial supervision was drawn up by EU finance ministers and the European Parliament earlier this month.

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