FRANKFURT, Germany, Sept. 1 (UPI) -- German Finance Minister Wolfgang Schaeuble has warned that a plan to include 6,000 European banks under authority of one regulator is impractical.
The European Commission is scheduled to review the merits of a proposal to put have 6,000 eurozone banks regulated by the European Central Banks. The commission will review the proposal Sept. 12, a spokesman for the office said.
Schaeuble said "common sense," dictates that the plan be rejected.
Instead of overseeing all the banks in the eurozone, the ECB should regulate only banks so large they carry a risk of causing "systemic" damage to the financial system, Schaeuble said.
The EUobserver reported Saturday that commission spokesman Stefaan De Rynck outlined a plan in which the ECB would be given "supervisory powers on all matters about financial stability, but national supervisors will continue to play a role, for instance to prepare and implement such decisions."
Individual nations "will also remain in charge of supervisory task on matters not related to financial stability matters, such as consumer protection or overseeing payment services," De Rynck said.