Creating a pan-European supervisor to deal with the monitoring of individual firms would not be the right way to develop the European Union's supervisory regimes, said Ewald Nowotny, the governor of the Austrian National Bank.

Nowotny said that the lead supervisor approach would not take into account the interests of local supervisors and governments. He said that an establishment of a federally-organised European system of banking supervisors, which would regulate cross-border institutions, was