From next year onwards, a single supervisor will oversee euro zone banks, suggest the European Union leaders. In their meeting of Friday, all the twenty seven European Union leaders have agreed for a legal framework suggesting a single supervisor to take the responsibilities of overseeing euro zone banks. As far as the precise number of banks to be monitored and the powers of the supervisor are concerned, no decision has been taken yet.

Officials believe that transferring the responsibilities of supervisor to the European Central Bank (as has been agreed) will allow the euro zone's rescue fund to inject capital directly into all the ailing banks by the year 2013. But yes, there still lies a doubt that if the decision will do any help to Spain in getting some of its banking liabilities transferred off the government's books, which will be hopefully determined until later in the year.

"There was an agreement, a good agreement, on timing and about the banks as whole", French President Mr. Francois Hollande told reporters when he arrived to attend the second day of the summit following his 10-hours-long-talks of Thursday.

"There was a willingness to progressively put in place the (oversight) mechanism", he added.