FRANKFURT, March 21 The new European banking
watchdog being set up under the auspices of the European Central
Bank should be spun off into an independent institution
eventually, ECB Governing Council member Klaas Knot told
Centralising banking oversight for euro zone lenders at the
ECB is part of a broader move towards closer integration of the
financial sector aimed at restoring investors' trust and
averting any future crisis.
Knot, who is also governor of the Dutch central bank, said
that it made sense to use the ECB's credibility to build up a
European banking watchdog and that the crisis left little
alternative to such a model. But over the longer term this
should change, he said.
"Once it is established, at some point in the future we
could again think about moving supervision out of the ECB and
launching an independent institution," Knot was quoted as saying
by online newspaper Handelsblatt Live on Friday.
(Reporting by Eva Taylor; Editing by Hugh Lawson)