The European Shadow Financial Regulatory Committee (ESFRC)issued its statement on 'Reforming Banking Supervision in Europe' disagreeing the demands made by the large European banks to move towards a system of one single European supervisor for large banks. The ESFRC believes that this is currently not feasible mainly because of the fact that deposit insurance and bail outs are the responsibility of the EU national Member States.
However, the Committee advocates the set-up of an European Banking Oversight Board as an independent institution, which would have to monitor the behaviour of national bank supervisors with respect to discriminatory practices, accountability and transparency. Recent problems in Italy are a good illustration of the need for such an European Banking Oversight Board.
ESFRC Statement on European Banking Supervision.doc" target="_blank">Document
© Graham Bishop
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