Eurozone finance ministers have agreed a plan to hand power to a single bank supervisor in Frankfurt, according to the FT.
According to the paper, finance ministers have agreed to plans for the European Central Bank to begin direct supervision of up to 200 eurozone lenders in early 2014.
The reform would require individual governments to surrender control over their national banks.
Non-eurozone countries, including Britain, also reportedly negotiated safeguards to limit the power of the ECB and maintain some influence over technical standards applied to all EU banks.
Michel Barnier (pictured), the EU commissioner responsible for the proposal, said it was a “historic agreement” providing a “fundamental element for financial stability in Europe”.