Support Grows for a Central EU Bank Resolution Authority

EU Commission President, Jose Manuel Barroso has joined the growing call for all banks within the 27 Members States of the EU to be subject to a single cross-border supervisor, a single EU-wide deposit guarantee scheme and a single rescue fund.  According to Mr Barroso, legislation could be in place as soon as 2013.

The UK and Germany are seen to be rather more cautious.  The UK is supportive of the idea in principle, but sees the issue of central regulation as one which relates to banks within the single currency area only and not the entire EU.  However, it will be relieved to hear that Mr Barroso believes that the UK should be able to opt out of the plan if it so chooses.  For its part, Germany also largely supports European banking regulation but is wary of the risk that it will end up supporting banks in the weaker EU periphery countries, seeing the issue as being inextricably linked to the more fundamental issue of greater fiscal union.

An FT interview with Mr Barros is available here:

http://www.ft.com/cms/s/0/ccb2fda0-b3cd-11e1-8b03-00144feabdc0.html#axzz1xflk5QrY

(subscription required)

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s