Lawmakers from Germany's ruling coalition want the European Central Bank's (ECB) planned new powers of cross-European bank supervision to apply only to systemically-relevant or cross- border institutions, according to a copy of their proposals.

Members of parliament from Chancellor Angela Merkel's conservatives and their Free Democrat (FDP) allies also reject proposals for cross-border bank deposit insurance, which they want to remain the responsibility of individual states.

The proposals for discussion in the Bundestag (lower house of parliament) were laid out in a document obtained by Reuters on Wednesday and reflect Merkel's own clearly-stated views on what supervisory powers the ECB should assume.

(Reporting by Mattias Sobolewski; Writing by Stephen Brown)