French President Nicolas Sarkozy on Tuesday calls for establishing a committee of banking regulation in Europe.

He said that France hopes the committee has real powers of sanction.

Currently Europe exists no transnational body for banking regulation, with each country overseeing its financial sector by its own regulating system and institution.

The European central bank can make and implement currency policies but has no authority of banking regulation.

Sarkozy said that he wants Europe to set an example in banking regulation, which will also monitor hedge funds, tax havens and executives' pay.

He calls for the Europe to "speak with one voice" in international negotiations on the issue.

The French president has been stressing the urgency for tougher financial regulation and an overhaul of international financial institutions since the global financial crisis started.

(Xinhua News Agency May 6, 2009)