(MENAFN- Qatar News Agency) Qatar National Bank's weekly analysis said that the Eurozone took another important step towards boosting the credibility of the Euro by creating a banking union. The European Central Bank (ECB)C will have the responsibility of supervising banks. Starting next year, the ECB will create a unified system for handling banking crises. Such a system will "ensure that the risk of another Eurozone financial crisis is reduced and the link between the resolution of banking crises and sovereign debt is diminished," QNB said in its report. Based on the report, the step was a much needed one since European banks found themselves highly exposed to the economic downturn and in need of public support to restore their financial viability after the events of the economic crisis. The European Commission approved EUR4.5tn in state aid to banks between October 2008 and October 2011, a sum which includes the value of taxpayer-funded recapitalizations and public guarantees on banking debts. This added a bigger burden on the weak public finances and pushed up sovereign debt ratios
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