EU summit: Compromise Deal on Eurozone Bank Supervisor.
The European Central Bank-led mechanism will have the power to intervene in any bank within the eurozone.
A legislative framework is to be in place by 1 January next year, with the body starting work later in 2013.
The deal appears to be a compromise between France and Germany, who earlier disagreed over the timing and over the number of banks the ECB would oversee.
France and the EU Commission wanted joint banking supervision, with the ECB in the lead role, to become operational in January 2013.
But German Chancellor Angela Merkel stressed that national budget discipline should be the priority.