Prime Minister David Cameron has updated MPs on the outcome of a recent EU summit on plans for further eurozone integration.
EU leaders in Brussels agreed a deal to make the European Central Bank (ECB) the chief regulator of eurozone banks.
The deal should pave the way for direct recapitalisation of struggling banks by the main bailout fund, the 500bn-euro (£406bn; $654bn) European Stability Mechanism.
Mr Cameron said Britain and others had demanded proper safeguards in the banking union for countries outside the new arrangements.
Labour leader Ed Miliband welcomed the supervision the ECB would have over the eurozone, but said the EU summit had failed to deliver a plan for growth.
The prime minister also told the Commons that European countries including Britain are to review the arms embargo in Syria as part of continuing efforts to support the opposition to President Assad.
Before he delivered the statement the PM offered his "deepest sympathies to the American people" after the mass killing of 20 children and six adults at a primary school in Connecticut.
He was supported by Labour leader Ed Miliband who said it was an "appalling tragedy".
