The head of the European Union’s new banking authority will look to prevent regulatory competition between member countries and strictly enforce a “single rule book” on banks.
In an interview with today’s Financial Times, European Banking Authority chairman Andrea Enria, who will be based in London, says he will be taking a tough line to prevent regulatory failures from the past being repeated.
He says: “I think now it has to be a little bit more top-down. The senior people here should engage in real policy discussions, take decisions and make things happen. The ‘single rule book’ is the true power. If we start having regulatory competition again, it will be havoc.”
The EBA board is made up of representatives from the EU’s 27 member countries and makes decisions on a majority vote. It can overrule national regulators in an emergency, although its power is limited when the issue involves taxpayer funds.