EU to make banks pay to centralize market supervision

APD NEWS

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To regroup the banking sector after Brexit, the EU's financial services chief proposes that market supervision should be centralized and that the banks themselves should pay for it.

European Commission Vice President Valdis Dombrovskis said on Thursday that a more integrated supervisory regime is needed in order to unify the EU’s capital market.

Britain has long fended off attempts by Brussels to step up EU-level supervision of London - the financial center in Europe by far – but it will have no say over EU policy after Brexit in 2019.

“We think that national supervisors in the EU should follow the same supervisory priorities,” Dombrovskis said in Estonia, where EU finance ministers meet on Friday.

“We can go further on the path toward supervisory convergence by empowering the European Securities and Markets Authority (ESMA) to directly supervise certain firms,” Dombrovskis said, adding he will propose that banks help pay for their supervision by regulators like ESMA.

There would also be a “strong role” for ESMA and its banking and insurance counterparts in the fintech sector as it seeks to compete with rival centers in London and elsewhere.

“They should coordinate national technological innovation tools such as innovation hubs or regulatory sandboxes,” he said. The three regulators would also play a role in mobilizing and directing capital toward “sustainable and green finance.”

(CGTN)