Spanish deputy favours ‘moral persuasion’ in supervision
Fernando Restoy compares European supervisory models
Fernando Restoy, deputy governor of the Bank of Spain, argued in favour of supervisors being able to act through "moral persuasion" to avoid being "unduly restricted" by a regulatory framework.
"The supervisor should have the actual ability to influence the decisions of the managers of the entities through moral persuasion and to make recommendations, not legally binding, with the assurance that they will be followed as a generalised practice," Restoy said, speaking at the Foundation for
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