Nyberg: Towards a new European supervisory structure
Today, many financial institutions operate on a global basis. At the same time the instruments for safeguarding financial stability essentially remain fragmented along national borders. This geographical mismatch is something that regulators will have to deal with, one way or the other. Essentially, we stand before a choice between two paths. Either we can move towards fully-integrated international regulatory and supervisory structures, in order to achieve a better match with the global format of the financial system. Or, we can shrink the financial system back inside national borders, within the perimeters of current regulatory and supervisory arrangements.
The EU has recently launched substantial reforms to the European supervisory structure, clearly signalling a preference to continue down the first of these paths.
The reforms have two objectives:
- to strengthen harmonisation and cooperation in the EU and
- to improve the identification and assessment of systemic risks on a European-wide basis.
In many ways this will help the EU to promote and maintain financial stability. However, to make the new system effective we also need to work on a common framework for dealing with cross border crises. Preferably, this should be done not only in Europe, but also globally.
You will find the whole speech in the pdf-file below.
