ECB supervisory Nouy rejects EU 'split' over banking union

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The newly appointed chair of the European Central Bank's supervisory board has said she is making it a "personal issue" to ensure that the creation of a eurozone "banking union" does not lead to a split between eurozone and non-eurozone countries.

Giving evidence to the Economic Affairs Committee on 18 March 2014, Daniele Nouy told MEPs she was keen to encourage non-eurozone states to opt-in to the so-called single supervisory mechanism (SSM).

She insisted, "the best way of making sure this will happen is for the SSM to do a very good job".

The supervisory board which Ms Nouy chairs oversees the SSM, which is one of the three elements of the eurozone 'banking union' created in the wake of the debt crisis.

The SSM allows for direct supervision of the eurozone's largest banks, notably those with assets of more than €30bn and those that have major cross-border activities.

Other elements of the banking union include a single resolution fund and a common method for winding up failing banks at minimal risk to the taxpayer.

Responding to a question from Portugal's Elisa Ferreira, Ms Nouy said the timescale towards setting up a fund, which could be as long as ten years, was "far too long", saying she would like the fund established within three to five years.

Ms Nouy joined the Bank of France in 1974, and became the country's senior bank regulator in 2003.

She was appointed as the first Chair of the Supervisory Board last November, for a non-renewable five-year term.

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