"Brussels has demanded that key banking regulations are set centrally, making national supervisors little more than arms-length officials policing the EU code. However, in a discussion paper on the new "toolkit" of powers the Bank is requesting to prevent a rerun of the financial crisis, it warned that Brussels was proving an obstacle to reducing systemic risk.
The Bank also appeared to endorse David Cameron's decision to veto the revised EU treaty after failing to secure additional safeguards for independent UK financial regulation.
The broadside against Brussels came in a consultation document from the Bank's Financial Policy Committee (FPC), which will have the power to instruct lenders to increase capital buffers or demand larger deposits from homebuyers to prevent dangerous bubbles forming in the financial system.
The document proposed 15 "tools" and cited examples of where the powers have been used and with what success to open a broad consultation with banks and users of finance. Responses are due by March next year, when the Bank will decide which "tools" to recommend to the Treasury.
"The key hurdle arising with the national discretion criterion is that the powers may be constrained by EU law," the Bank said. "In particular, the draft Capital Requirements Regulation is a so-called 'maximum harmonising' regulation. "
Source: Bank of England: Brussels is an obstacle to reducing risk - Telegraph
AtW's comment: if only Europe had a pair of safe hands like BoE:
The Bank also appeared to endorse David Cameron's decision to veto the revised EU treaty after failing to secure additional safeguards for independent UK financial regulation.
The broadside against Brussels came in a consultation document from the Bank's Financial Policy Committee (FPC), which will have the power to instruct lenders to increase capital buffers or demand larger deposits from homebuyers to prevent dangerous bubbles forming in the financial system.
The document proposed 15 "tools" and cited examples of where the powers have been used and with what success to open a broad consultation with banks and users of finance. Responses are due by March next year, when the Bank will decide which "tools" to recommend to the Treasury.
"The key hurdle arising with the national discretion criterion is that the powers may be constrained by EU law," the Bank said. "In particular, the draft Capital Requirements Regulation is a so-called 'maximum harmonising' regulation. "
Source: Bank of England: Brussels is an obstacle to reducing risk - Telegraph
AtW's comment: if only Europe had a pair of safe hands like BoE:
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