The European Central Bank (ECB) wants a greater role in euro zone banking supervision to improve its ability to tackle a crises in the financial system, the Wall Street Journal Europereported today.
The ECB wants to turn its banking supervision committee into the premier body co-ordinating between the at least 25 national authorities now involved in financial supervision in the euro zone, the paper said, citing people familiar with the situation.
The ECB declined to comment on the article.
One element of the plan was to give its banking supervision committee a more independent role. The committee, chaired by Bundesbank council member Mr Edgar Meister, now directly reports to the ECB Governing Council.
Supervision of the financial system in Europe is now a national responsibility and is highly fragmented between national central banks, finance ministries or separate supervising bodies.
In several countries, supervising authorities have been subject to reforms, or proposals have been made to do so, limiting the role of central banks in some cases.
The ECB has said several times that central banks should at the national level be involved in financial supervision.
Their already close contact with the banking sector puts them in a good position to monitor financial risks, the ECB argues.