European Union finance ministers reached an agreement early Thursday to create a single supervisor for their banks - one of the most significant transfers of authority from national governments to regional authorities since the creation of the euro currency.
Under the deal, banks with more than $39 billion in assets supervised or those that represent a significant proportion of their national economies will be placed under the oversight of the European Central Bank.
The deal gives the ECB broad powers, including the ability to grant and withdraw banking licenses, investigate institutions, and financially sanction banks that don't follow the rules.
But perhaps most important is that it paves the way for Europe's rescue fund to directly rescue the continent's troubled banks.
"It's real progress that opens up interesting possibilities," said French Finance Minister Pierre Moscovici, without giving a specific date for when the first banks could seek direct aid.
Read more: In cautionary move, Europe centralizes bank oversight - CBS News