The banking regulator will develop a common EU rules for the banking industry

The new EU banking regulator - the European banking management (European Banking Authority, EBA) intends to introduce a single set of rules regulating the banking industry to the EU, the Financial Times citing a statement the new head of EBA, Andrea Enria. "I believe that now the principle of the organization must become more hierarchical, - said A. Enria in an interview with Financial Times, his first interview since his appointment as head of EBA, in January of this year. - Management should take an active part in discussions, make some decisions and ensure their implementation. Our strength - only one set of rules. If we once again will begin the confrontation of regulators, it will end. " Experts note that such a rigid position directly threaten the position of national regulators, in particular, the British Financial Services Authority (FSA), which in turn have a negative impact on innovation and the principles of free competition in the banking sector in Europe. "In five years we will communicate only with the EBA and Brussels. FSA would not comment after the event" - Financial Times brings words of the head of one of the major international banks. However, although the idea of ??victory is more effective single supranational regulator, compared with a variety of disparate national agencies secretly been preparing for many years, it took the world financial crisis to finally persuade European politicians to the need for a more centralized approach to banking regulation. According to A. Enria, five years ago, he endured the issue of tightening the requirements of national regulators to liquid assets of banks and harmonization of regulations in force in respect of bank capital, for consideration by the Committee of European banking regulators (CEBS) - the predecessor EBA. However, the initiative was still at the discussion stage, when the financial crisis of 2008. "We could have set the benchmark for subsequent discussions of the World, but we had no tools required. We had no power", - A. Enria. According to head of EBA, the main task of the new regulator for the near future will be to restore confidence to the stress test, which was undermined after last year's Irish banking system effectively collapsed just four months after the European tests. EBA in contrast to the CEBS will be endowed with real powers. Body composed of representatives of 27 EU member states will be able to make decisions collectively by a simple majority of votes and in case of emergency make decisions that have priority over national legislation. Source: Finmarket