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27 November 2013

ECON(欧州議会の経済通貨委員会)、SSM(単一銀行監督メカニズム)におけるECB(欧州中央銀行)の監督部門責任者候補とされるダニエレ・ノウイ氏を証人喚問


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Danièle Nouy, the ECB's nominee for the new post of EU bank supervisor, was quizzed about her views on banks' exposure to sovereign debt, the accountability of the future supervisor, and the need to develop all the pillars of Banking Union. (Includes quote from Graham Bishop.)


 

The economic and monetary affairs committee will now vote to approve Ms Nouy on 5 December and a plenary vote is scheduled for mid-December. Parliament has the power to approve or reject the candidate.

Accountability is what is expected

In her opening remarks, Ms Nouy said Parliament had "very legitimate expectations to expect the new supervisor to be accountable and transparent. This will be very high on my agenda." Responding to questions, she added that she had no problems about complying fully with the letter and the spirit of the ECB/EP agreement regulating accountability and that she would be prepared to attend parliamentary hearings regularly and not just occasionally, when times were bad. "Transparency is what people expect of us", she said.

Re-evaluting risk of sovereign bonds

The exposure of banks to sovereign risk was raised by many MEPs, who asked Ms Nouy how she planned to address this issue. "Without being dramatic", the time was ripe to reassess the risk weightings assigned to sovereign bonds, Ms Nouy said. She added however that this would not be her only focus, and that the supervisor should encourage banks to let go of their toxic assets to make space on their balance sheets for activities which would help the real economy more.

Banking Union has three legs

In reply to questions on the broader system of Banking Union, Ms Nouy said unequivocally that the EU supervisor would be hampered if the two other pillars of Banking Union (recovery and resolution mechanism and deposit guarantee system) were not set up.

On the topical issue of whether the future EU bank resolution authority should be responsible for all banks or only the larger ones, Ms Nouy said that the all-encompassing model would be the better option.

Press release

ECON-draft report including Q&A with Nouy

EuroParlTV video


Nouy told lawmakers in the European Parliament that banks should not be given a regulatory incentive to buy government bonds. "We learned through this crisis that there is no risk free asset", she said. Besides, she added: "We need the banks to finance the economy. If they increase their holdings of sovereign debt, they are less able to finance the economy."

Nouy will also herald in a new era when more of the burden of salvaging or shutting failed banks will be shunted onto their creditors, a radical model tried out in Cyprus, where banks' biggest depositors suffered losses. Germany wants prompt rules to hit senior bank bondholders, a step that worries Spain and others. It will fall, in part, to Nouy to weigh the risks that such losses could upset market calm in deciding how radical such steps should be.

Her job will be as political as it is technical. "She has to be a technical master and speak truth unto power", said Graham Bishop, an advisor to the European Commission.

Further reporting © Reuters



© European Parliament


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