4 Sep 2013
ECB should be the sole authority to decide the fate of ailing banks – Assmussen
FXstreet.com (Barcelona) - ECB board member Jörg Asmussen suggested today at a banking conference in Frankfurt that the central bank should be an exclusive decision-maker as far as to which European banks ceased to be viable and should be wound down.
He stressed the importance of creating a banking union in the area to attain a truly integrated financial market. “For us as the central bank, that is very important. Only that way can our monetary-policy signals gain traction everywhere in the euro area,” Asmussen pointed out.
Due to recent differences between EU governments on the issue, the process of designing the banking union has slowed down somewhat. The European Parliament however is expected to approve a law on joint banking supervision next week, which would allow the ECB to take over as single supervisor in late 2014.
Furthermore, Asmussen said that the third, upcoming round of stress tests will be the “last chance” to rebuild confidence in the EU's banking sector.
He stressed the importance of creating a banking union in the area to attain a truly integrated financial market. “For us as the central bank, that is very important. Only that way can our monetary-policy signals gain traction everywhere in the euro area,” Asmussen pointed out.
Due to recent differences between EU governments on the issue, the process of designing the banking union has slowed down somewhat. The European Parliament however is expected to approve a law on joint banking supervision next week, which would allow the ECB to take over as single supervisor in late 2014.
Furthermore, Asmussen said that the third, upcoming round of stress tests will be the “last chance” to rebuild confidence in the EU's banking sector.