Plans to reform EU financial supervision criticised

Proposals for overhauling Europe’s patchy system of financial supervision have paid too little attention to how cross-border bank bailouts should be funded, an influential report from Belgium said in June 2009.

The report, written by a high-level committee for the Belgian government, said the recommendations in the de Larosière report paid 'insufficient attention' to the issue of burden-sharing between member states in the case of cross-border bank rescues.

The committee was headed by Alexandre Lamfalussy, a European economist and central banker who has already played a significant role in trying to develop more coordinated supervisory structures for banks and other financial institutions in Europe.

ESO: Background information: European responses to the financial crisis http://www.europeansources.info/record/european-responses-to-the-financial-crisis/

ESO: Background information: Brussels to step up pace of bank reform http://www.europeansources.info/record/brussels-to-step-up-pace-of-bank-reform/

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