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Slovenian proposal on central bank responsibility violates EU law: ECB
May 18, 2017 / 6:22 AM / 6 months ago

Slovenian proposal on central bank responsibility violates EU law: ECB

FRANKFURT, May 18 (Reuters) - A Slovenian proposal to put its central bank under limited supervision violates European rules, the European Central Bank President Mario Draghi said in a legal opinion published on Thursday.

Euro zone member Slovenia moved last month to authorise the Court of Audit to have some oversight of the Bank of Slovenia’s business activities and let it review its past supervisory decisions, including a past restructuring of the bank sector.

The law would also allow investors bailed in during the restructure to seek damages.

But the ECB said having to pay damages by the bank violates EU rules prohibiting monetary financing while a requirement to disclose confidential information was also against the law.

“Therefore, the draft law should be amended to ensure that Banka Slovenije does not assume any liability of the State, including, in particular, in cases where both Banka Slovenije and the State are severally liable,” Draghi said. (Reporting by Balazs Koranyi; editing by Ralph Boulton)

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