European Central Bank welcomes new role in new European supervisory body
FRANKFURT, Nov 4 (Reuters) – The European Central Bank welcomed plans to give it the key role in a new European supervisory body, saying it would neither distract it from ensuring price stability nor create a threat to its independence.
In a legal opinion, the ECB welcomed plans for the European Systemic Risk Board (ESRB) — a new body to be chaired by ECB President Jean-Claude Trichet.
“The involvement of the ECB and ESCB in the ESRB will not alter the primary objective of the ESCB… which is to maintain price stability,” the opinion said.
“The ECB notes that its supporting activities for the ESRB will neither affect the ECB’s institutional, functional and financial independence,” it added.
The ESRB is part of the EU plans to make markets safer for investors by applying lessons from the credit crunch and aims to be in place next year.
It will monitor any build-up of risks in the financial system and issue warnings to relevant authorities about what should be done about risks in the financial system.
(Reporting by Marc Jones)
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