Monetary Policy and Banking Supervision: Coordination Instead of Separation

Monetary Policy and Banking Supervision: Coordination Instead of Separation

Monetary Policy and Banking Supervision: Coordination Instead of Separation

Following the June 2012 European Council decision to place the ‘Single Supervisory Mechanism’ (SSM) within the European Central Bank, the general presumption in the policy discussions has been that there should be ‘Chinese walls’ between the supervisory and monetary policy arms of the ECB. The current legislative proposal, in fact, is explicit on this account.

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