The European Commission wants the European Central Bank to be the supervisor for all the banks in the 17 countries that use the euro and have the power to fine institutions, Belfast Telegraph reported.

The creation of a single supervisor for banks would be an important step towards a "banking union" - a unified playbook for all of the 6,000 banks in the eurozone that many think is necessary to dig the continent out of a crippling debt crisis.

The proposal would also give the ECB the ability to issue - and take away - banking licences, approve large mergers and acquisitions and investigate banks.

The commission's plan needs to be approved by the European Parliament and the Council, where all 27 countries of the European Union are represented.