March 20, 2012
By Peter Wilding.
Although the Telegraph thinks that our fellow Europeans will be riled, the UK is urging other European governments to adopt the newly-minted British system of financial supervision. Mark Hoban, UK financial services minister, said that the Financial Reporting Committee’s job would be “taking away the punchbowl” from overheated markets.
Speaking at a regulatory event in London, Mr Hoban said:
“We also believe macro prudential supervision needs to be mirrored in Europe. It’s vital all national regulators have both macro prudential and resolution tools to address emerging risks.”
Forging a set of macro prudential tools is a core post-financial crisis reform to plug a supervisory gap of failing to spot broader risks from banks and other parts of the financial system before it was too late. The tools could include caps on home loans and tailoring capital requirements to individual risks at banks, such as exposures to commercial property.
The European Union has already […]