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Swedish central bank governor supports EU common banking supervision policy
Tuesday, 05 June 2012
There is increasing talk of a common fiscal policy in the European
Union to rescue the euro and confidence in the major European banks.
The governor of the Swedish Central Bank (Riksbank), Stefan Ingves is
positive in what some authorities are questioning whether this is
another move by European bureaucrats to bog down the European financial
spare more with further bureaucratic policies. Or a way to make Europe
untangle itself from too much regulations and begin productivity and
consumption thereby stimulating growth.
The International Monetary Fund is said to have called for a European
Banking Union and according to the Wall Street Journal, the German
Chancellor Angela Merkel wants to introduce a kind of European agency
that directly oversees Europe's big banks.
Swedish Riksbank’s Governor, Stefan Ingves welcome the idea of a common monitoring:
“Yes, that's about the direction this is obvious. The more cross-border
banking business we have, the more need have you of it, and an example
of an organization that exists today is of course the ESRB used to
examine those kinds of questions,” he said to radio Sweden.
Asked if it is important for Sweden to be part of such a more common monitoring?
“Yes,” he said. “It is important for Sweden, since Sweden has a large
banking sector that has a lot of cross-border activity and Sweden is
part of Europe. Whatever happens in Europe affects us in one way or
another, so of course it is important to us.”
Relating to the nature of a banking union in the EU, the governor said
that “It's hard to tell what one mean by banking union.” What he stress
was that “we need a stronger European supervision of banks, I think it
is pretty clear by now, and it has also worked with others such as with
the European Banking Authority, (EBA), but then what it means
additionally in case of the banking union, if we're talking deposit
insurance or anything else it is too early to say.”
According to reports, Angela Merkel and Jose Manuel Barroso think that
Bank Union should include a strengthened banking supervision and
enhanced capacity for deposit insurance.
Angela Merkel and Jose Manuel Barroso also agreed that the crisis
strategy must continue to build on fiscal consolidation, structural
reforms and targeted investments to stimulate growth.
By Scancomark.se Team
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