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UK minister warns EU not to replace national supervisors

Thursday 10 June 2010 - by Luke Nelson

The European Union needs common standards on supervision but national supervisors should not be replaced says UK financial secretary to the Treasury Mark Hoban.

Speaking at a think tank event in Brussels on 3 June, Hoban argued that there is a need for supervision of national regulators but day-to-day supervisory decisions have to remain local in nature.

He stressed that national supervisors need the discretion to respond to the challenges posed by the size and structure of their banking systems as well as their domestic economies.

Hoban argued that the supervision of individual firms is intrinsically linked to potentially large fiscal impacts for member states, and that therefore, some decisions will always need to be taken by national regulators.

He said the UK coalition Government believes that the new European supervisory architecture is the right arrangement and would like to see the institutions up and running by 2011.


He also warned that the new European Supervisory Authorities must abide by the highest standards of corporate governance.

“This means de-politicised oversight, open and meritocratic appointments and transparency in decision-making. And the new framework must be legally workable.”

On the issue of capital requirements, Hoban said the Government is keen to see higher minimum capital levels in place and supports the work taking place in Basel and the European Union.

He said: “The British Government will never shirk the difficult choices needed to reform banking and financial regulation and, if we have to, we are prepared to go further and tougher than our international partners to safeguard our economy.”


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