Monetary policy and banking supervision

Sylvester Eijffinger, Rob Nijskens 19 December 2012

a

A

Assigning the task of banking supervision to the ECB raises questions regarding the relationship between its primary mandate, monetary policy, and the newly attributed supervisory powers. A serious concern is that monetary policy runs the risk of no longer being independent. Therefore, it has to be ensured that the functions of supervision and monetary policy are clearly separated and independent from political control. However, monetary and financial stability are very much related and mutually reinforce each other, especially in the longer term.

a

A

Topics:  EU institutions Monetary policy

Tags:  ECB. banking supervision

Events