Although the establishment of a federal regulator of major
banks in the E.U. was as yet not approved by the European Parliament or ratified
by the governments of states using the euro as well as any other states opting
in, the European Council of Ministers signed off in December 2012 on an
amendment that would give the European Central Bank authority over banks that
have at least €30 billion in assets, make up more than 20% of their state’s
economic output, or operate in at least two states (i.e., interstate banking).
At the very least, three banks per state would come under the central bank’s
oversight. Other banks would remain the responsibility of state regulators. This
is an interesting “working out” of federalism, distinctively European-style.
German Finance Minister Wolfgang Schäuble at the E.U. Council of Ministers discussing the bank supervisor amendment. WSJ
The full essay is at "The European Central Bank."