April 23, 2020 / 8:52 AM / a month ago

Swedish c.bank says advantages to joining EU banking union

STOCKHOLM, April 23 (Reuters) - Swedish banks’ extensive cross-border operations mean that it would be appropriate for them to be part of the European banking union, the Riksbank said on Thursday.

“The EU’s single supervisory and resolution mechanisms are more appropriate for the Swedish banking sector than the equivalent national mechanisms,” the Swedish central bank said in a summary of its reply to a government panel looking into whether Sweden should join the banking union.

Riksbank Deputy Governor Henry Ohlsson entered a reservation against the statement saying while he agreed that joining would bring benefits, “Sweden’s lack of a right to vote in the ECB Governing Council is a completely decisive disadvantage that overshadows the advantages”.

Reporting by Simon Johnson

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