ECB flags pitfalls for new Estonian supervisory law

The Bank of Estonia

The European Central Bank has issued a legal opinion on planned changes to the Bank of Estonia's supervisory mandate, flagging up a number of risks for Estonian lawmakers to avoid.

The draft law tightens micro-level regulation for credit institutions, imposing controls on risk management, while adding reporting requirements and a leverage ratio. The law also places control of macro-prudential supervision and payment system oversight with the Bank of Estonia.

The ECB noted with approval that the

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