Following the Wirecard scandal last year, Brussels has proposed new provisions in an effort to secure more independence for bank regulators in the EU. Policy Fellow Sebastian Mack explains the benefits of these provisions.
Bank regulators in the EU are likely to be forced to cut ties with the financial industry and national governments if the new provisions come into effect. According to Sebastian Mack this "would massively strengthen the operational independence of BaFin and other national supervisors." But he adds that for full independence, the EU would also have to introduce rules for the appointment and dismissal of the authority's management.
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