By Sam Obenhaus
On
Wednesday, November 20, the European Central Bank took a major step towards
integrating the euro zone’s financial markets when it nominated Danièle Nouy to
serve as the first “Single Supervisor” for major banks across the continent. If
confirmed by the European Parliament, she will lead one of the world’s most
important start-ups. The Single Supervisor’s office is still in the
process of hiring staff and it does not gain the legal authority to start
regulating banks until the end of next year.
The
task facing Nouy is hugely important for the future of the euro zone. One
of the chief criticisms of the zone is that oversight of its banking system
remains balkanized. The hope is that installation of a Single Supervisor,
along with the first set of stress tests that subject the zone’s banks to the
same set of standards, will address this persistent criticism.
The
New
York Times has more on this story.
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