UK 'concerned about ECB power in banking union'

4 October 2012

The European Central Bank (ECB) must not be afforded too much power in the new system of banking supervision in the eurozone.

That is according to Greg Clark, UK financial services minister, who has warned that the central institution should not be in a position whereby it is able to completely control the region's banking industry.

Last month, proposals were put forward by officials in Brussels that would see the ECB take charge of the supervision of all 6,000 financiers in the euro area as of the beginning of next year, before then overseeing lenders in the European Union from 2014.

However, Mr Clark has told Reuters that British policymakers have several reservations about the efficacy of this plan, with the "potential for the ECB to dominate decisions" chief among them.

"As things stand there is an unacceptable risk that the ECB could dominate to an extent that I don't think was envisaged," he added.

By Claire Archer

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