FRANKFURT Nov 23 Commerzbank Chief
Executive Martin Blessing urged policymakers to make up their
mind about whether a European bank regulator should stabilise
financial markets or serve as a tool for back-door financial
transfers to weak euro zone states.
"Do we want European supervision to be an institution that
truly stabilizes our financial system or more as a vehicle for
re-allocation and transfer?" Blessing asked bankers and
regulators gathered at a conference in Frankfurt on Friday.
"Funds should be provided to banks only if the ESM/European
supervision has the ability to clamp down and receive ownership
of failed banks," he said, referring to the European Stability
Mechanism, the EU's rescue fund.
The European Central Bank (ECB) was the right institution to
take on the task of reforming supervision of lenders in Europe,
the German banker said, adding that a common regulator should
oversee all banks in Europe.
"I do not see another candidate for this task," Blessing
said, even if day-to-day checks on small lenders would still be
done at national level.
(Reporting by Jonathan Gould and Edward Taylor; Editing by Mark