FRANKFURT (MNI) – A joint European bank resolution fund “might
require more coordination of economic policies,” Bundesbank Board member
Sabine Lautenschlaeger said Wednesday.
She noted that economic policies are always reflected on banks’
balance sheets.
Lautenschlaeger, speaking at an event organized by Frankfurter
Volksbank, thus questioned whether simply having joint bank supervision
would be sufficient to justify shared liabilities for possible bank
failures.
She said she welcomed the push for common European supervision but
warned that it “must be a strong, efficient supervision.” In her view,
this would also imply preserving the national supervisors’ intricate
knowledge of their smaller and medium-sized local banks, she said.
On the subject of price stability, Lautenschlaeger said inflation
expectations in the Eurozone are “well anchored” and there is no reason
to fear any sharp increase in inflation.
Nevertheless, she said it is essential to keep an eye on all
non-standard ECB policy measures with a view to long-term stability and
to consider how the central bank can prepare to exit those policies.
–Frankfurt bureau tel.: +49-69-720 142 Email: jtreeck@mni-new.com
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