Banking Supervision: Nowotny Warns of Over-Ambition

People ♦ Published: September 18, 2012; 19:49 ♦ (Vindobona)

According to the governor of OeNB (Austrian Central Bank), it would be dangerous to establish new institutions without a democratic legitimization.

Banking Supervision: Nowotny Warns of Over-Ambition / Picture: © Vindobona.org

Nowotny fears that the plans of the EU-Commission are too ambitious. The plan may bring disappointment soon. According to the Commission, the banking union should contain a centralized supervision authority. Moreover, the deposit protection and the restructuring rules should be unified. As a first step, the competence of ECB will be enlarged. ECB becomes a centralized financial market…