EU Outlines Overhaul of Financial Regulation |
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May 27,2009
Legislation to overhaul Europe’s patchy system for supervising banks and insurers, and introduce a new system to help warn against future financial crises will be put forward in the early autumn, top EU officials said on Wednesday.
Legislation to overhaul Europe’s patchy system for supervising banks and insurers, and introduce a new system to help warn against future financial crises will be put forward in the early autumn, top EU officials said on Wednesday.
The European Commission unveiled its outline proposals to reform financial supervision in the EU. As expected, this follows closely the two-tiered approach suggested by former French central banker Jacques de Larosière, who was called to advise of changes in the wake of the recent financial and economic turmoil.
In particular, the commission is advocating the creation of a new European Systemic Risk Council, to assess and warn about threats to financial stability in the region, coupled with a new “European System of Financial Supervisors”, which will oversee individual banks and financial firms.
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