The European Banking Authority enters a new home this Monday. This was effected Brexit as it forced the regulator along with its near 200 employees to leave their digs in Carnary Wharf district of London.
Eight cities are trying out their chance to host the EBA. The glory of housing the top banking regulator of the EU could reward them with some attraction to a few major financial hubs of the euro area like Frankfurt and others as they try to remove London of their seat of dominance. If the EBA eventually lands in the regions of Prague or of Warsaw, it could facilitate the increased influence of countries outside the zone of a single currency.
The EBA which was created in 2011 when the financial crisis set in, makes the standards, puts supervision in place across the European Union and goes to run the biennial stress test for the bloc. The General Affairs of the EU will choose the fresh seats of the EBA and the more prominent European Medicines Agency, and in the run-up to vote there has been many horse-trading.
Dirk Schoenmaker who is a senior fellow at the think tank named Bruegel which is situated in Brussels on Monday said that soon a decision would be reached and it will be a fraction of a bigger and more encompassing political deal.
“The link that is had with the ECB is pretty important, explains Frankfurt” also is the host of the European Insurance and Occupational Pensions Authority, he stated. “Following that, due to the fact that the EBA has to come in between countries that are in the euro and are not, a country that is out would be an obvious choice.”
The Significant Factor
Although influence is had by the EBA on the side that makes the rules, it does not monitor lenders and has witnessed the waning of its authority since the European Central Bank assumed the position of being the supervisor of the euro-area in 2014.