ECB faces defiance on bank oversight as Germany hoards powers

Vienna

THE European Central Bank (ECB) faces increasing defiance from euro-area governments reluctant to cede control over their lenders, highlighted by a German bill that chips away at the ECB's supervisory powers.

The Bundestag, the lower house of parliament, was due to vote on Thursday on an amendment to Germany's banking act that would allow the Finance Ministry in Berlin to issue rules on banks' recovery plans, risk management and internal decisions under a bill implementing European Union (EU) rules for winding down failing banks.