EBA chair wants flexible approach to macro-prudential regulation

Andrea Enria

European Banking Authority chair Andrea Enria, on April 11, said there are strong arguments for "some flexibility in the use of macro-prudential instruments" within the EU banking sector.

Speaking at the Hyman P Minsky Conference in New York, Enria outlined his reasons for this view, saying: "Systemic risk may materialise in different ways, and no predetermined rules could address it, since credit and economic cycles are not fully synchronised across EU countries and financial markets are still heterogeneous."

"Member states may necessitate some room for manoeuvre in the activation of policy measures: the development of macro-prudential instruments is still at an early stage, and some flexibility may contribute to the learning-by-doing process," said Enria.

The EBA chair said the flexibility should not hamper the European single market. He said "the integration of financial and banking markets cannot be considered a permanent accomplishment if it is not underpinned by effective harmonisation of the legal framework and its consistent application throughout the Union".

Click here to read the speech.

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