ECB's Nouy says differing rule interpretations cause imbalances

Banking regulation must speak one language, the pinnacle of the ecu Central Bank's superordinate watchdog was quoted as oral communication on Sunday, adding that differing interpretations of an equivalent laws had created some distortions within the monetary unit space.

Daniele Nouy, WHO chairs the only superordinate Mechanism (SSM), same a key challenge was to confirm banks were subject to an equivalent direction and regulation across jurisdictions.

"We have to be compelled to guarantee totally consonant prudent banking direction," Nouy told Cyprus's Politis newspaper in AN interview printed on Sunday.

She same the primary step had been the introduction of the only accumulation, however same that the transposition of the Capital needs Directive into national law had semiconductor diode to elements of it being understood in numerous ways that, "creating AN uneven enjoying field across the monetary unit area".

Nouy same the supervisor had known some 167 cases covering problems like intra-group exposure limits and equity holdings of insurance corporations and corrected 122 of them.

"We won't stop there," she said. "Our aim is to determine a unified, integrated and consonant superordinate framework, and this needs consonant regulation."

The SSM oversees the 129 biggest banking teams within the monetary unit space. Nouy laid-off suggestions that the authority was to a fault strict in its assessments.

"Let’s face it: if there aren't any complaints then you're in all probability not a decent supervisor," Nouy same in response to AN observation that past health checks tests triggered complaints from Cypriot banks of being too severe.

"We ar as robust as is bonded by true and therefore the knowledge that we discover... Our job is to confirm that banks ar well equipped and have enough high-quality capital to face up to the risks that they may encounter."

Nouy same the Cypriot industry was currently in higher form than 2013, once one bank folded and another was forced to bail-in purchasers deposits to recapitalise. But, she said, any efforts were required to wrestle down a high level of non-performing loans.

The SSM, she added, additionally stood able to facilitate with technical experience in any ultimate unification of the island, split since a Turkish invasion in 1974 triggered by a short Greek Cypriot coup.

The SSM's sphere of authority is currently confined to banks operative in Cyprus's government-controlled south.