September 18, 2017 / 5:10 PM / a month ago

Give ECB supervisors more power, not rules: Lautenschlaeger

FRANKFURT (Reuters) - European lawmakers should give the European Central Bank’s supervision arm greater discretion rather than more rules in overseeing lenders across the euro zone, an ECB director said on Monday.

FILE PHOTO: The headquarters of the European Central Bank (ECB) (R) is seen next to the famous skyline in Frankfurt, Germany, April 9, 2017. REUTERS/Kai Pfaffenbach /File Photo

“Instead of having overly detailed rules, we should have a strong basic set of rules that allows supervisors some discretion,” Sabine Lautenschlaeger, who represents the ECB’s supervisory arm on the institution’s board said at an event in Basel, Switzerland.

“Supervisors have the relevant skills and experience, and in-depth knowledge of the banks they supervise.”

She added that when the rulebook becomes too detailed, supervision turns into a box-ticking exercise, making the ECB less flexible and effective.

Reporting By Francesco Canepa; Editing by Balazs Koranyi

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