Delay to EC bank overhaul

The European Commission's attempt to overhaul the bloc's banking system is set to be delayed by a legislative logjam in Brussels.

José Manuel Barroso, Commission president, has planned a number of directives and regulations to "make sure that banks in the euro area stick to sound financial practices".

On Friday, a path to banking union was agreed by European leaders. A banking supervisor is to be set up next year. But many of the necessary reforms are tied up in measures being debated in the European Parliament's committees. Politicians in Brussels say there will not be time for all the plans to be scrutinised by the new year, which is the target deadline for many to be settled.