"Nobody believes it will work. Nobody believes any institution will be able to supervise 6,000 banks.” Wolfgang Schauble, Germany’s finance minister, FT 2012
"Our specific responsibilities include the oversight of about 5,000 bank holding companies, including the umbrella supervision of large, complex financial firms; the supervision of about 850 banks nationwide that are both state-chartered and members of the Federal Reserve System (state member banks); and the oversight of foreign banking organizations operating in the United States."Chairman Ben S. Bernanke,The Federal Reserve's role in bank supervision, Before the Committee on Financial Services, U.S. House of Representatives, Washington, D.C. March 17, 2010I concede that 6000 > 5850. Not that 6000 >>> 5850.
P.S.
Question: how many Polish banks are...Polish?
Agree - but a major restructuring of the euro system would be needed - Federal Reserve System staff circa 20,000; ECB and DG ECFIN staff circa 2,000. Is the idea that we would have less independent central banks in euro countries and the EU level would absorb their current staff?
ReplyDelete@Marcelo
ReplyDeleteThe authority that implements monetary policy is the Eurosystem which consists of the European Central Bank and the central banks of the member states that belong to the eurozone. In your comparison with the Federal Reserve System, the number of relevant employees is the one of the Eurosystem , not just the ECB. Think of the ECB as the headquarters. Officially the ECB is defined as the core of the system.
This distinction should actually be adopted in official statements: the Eurosystem will become the sole euro-bank supervision authority. The ECB again will be the core. Yesterday statements by Mario Draghi seem to be coherent with the above distinction.
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