Bundesbank VP Calls for Single Resolution Authority
On Monday, Bundesbank Vice President Sabine Lautenschläger spoke out in favour of a single resolution authority at a conference in Berlin, according to this article. She said an EU wide mechanism would be able to take a “bird’s eye view” of financial institutions allowing for an easier and quicker solution in crisis situations. Lautenschläger added that it does not make sense to oversee banks at the European level while leaving their resolution to national authorities, although accepted that this would require amendment to EU treaties.
Her comments are at odds with the German government which ideally seeks a network of national resolution authorities (although recently agreed to a “resolution board” made up of national authorities) and is resistant to any scheme that could empower an external agency to independently decide when to close a bank. German Deputy Finance Minister Thomas Steffen, speaking at the same conference, said that the EU Commission would have a centralised resolution authority proposal soon.Contact Us