ECB does not have rule-making power – Elderson
Binding decisions are based on existing regulations and not supervisory expectations, board member says
The European Central Bank would only enforce supervisory decisions against lenders based on regulations, not guides or expectations, a member of the institution’s executive board has said.
In a speech on October 27, Frank Elderson addressed the industry’s concerns that the ECB had been issuing binding supervisory decisions without a legal basis.
Under European Union arrangements, the ECB only plays the role of supervisor and does not have the power to set prudential regulations. This contrasts
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