Centralising supervision may trigger more integration, ECB paper finds

Centralising supervision could create need for even greater centralisation, says ECB

Euro sign, Frankfurt
ECB: home of Europe's supervisors

Centralised supervision of banks may trigger more financial integration and create a need for even greater centralisation, according to research published by the European Central Bank today (April 29).

The working paper, Optimal supervisory architecture and financial integration in a banking union, by Jean-Edouard Colliard, studies the architecture of bank supervision in supranational and federal contexts.

"Centralizing supervision promotes market integration, in the sense that foreign investors

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