European Central Bank (ECB) governing council member Mr Ernst Welteke warned yesterday against EU plans for a shake-up of financial supervision, which he said could be a first step towards a single watchdog in the bloc.
Co-operation between national supervisors was already solid and Europe's politicians should not try to push central banks out of supervisory roles altogether, Mr Welteke said on the eve of a meeting where finance ministers and central bankers will discuss the topic.
"Proposals made by the finance ministers of Germany and the UK envisage new institutions or committees, which could be seen as a potential nucleus for a European Financial Supervision Authority," Mr Welteke said in a speech at a Bundesbank conference.
"This model is not easy to apply to the banking sector," added Mr Welteke, who is also the Bundesbank president.
Finance ministers plan to endow two or more committees with rule-making powers to which the EU's 30-odd national supervisors should then refer to and central banks, including the ECB, are concerned at being left out of the process.
"Any future form of co-operation in the field of financial supervision should make use of central banks' know-how in banking supervision and financial markets," Mr Welteke also said.
Sources say that finance ministers clearly intend the revision process to firm their grip on financial supervision and that they plan to relegate central banks a role in only the lower-ranking of two committees.
The EU finance ministers at their weekend meeting in Copenhagen will discuss their oversight plans with central bankers today.
But a final decision on the new set-up will only be taken in October. - (Reuters)
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