HC Deb 17 December 1997 vol 303 c192W
Mr. Mitchell

To ask the Chancellor of the Exchequer (1) what competence the Governing Council or Executive Board of the European central bank will have for requiring its component national central banks to apply common criteria or rules for licensing and supervision of their respective national banks and credit institutions; [21225]

(2) pursuant to his answer of 2 December 1997, Official Report, column 168, if he will make a statement on the treaty responsibilities of the European Central Bank in respect of the licensing and supervision of national banks and credit institutions in the event of UK entry into EMU and its consequent duties in respect of actions of national banks. [21004]

Mrs. Liddell

None. Article 105(6) of the Treaty would allow the ECB to carry out specific tasks concerning policies relating to the prudential supervision of credit institutions but only after legislation by the Council, acting unanimously, had conferred these functions on the ECB. No such legislation has been proposed by the Commission. Under Article 105(5) the European System of Central Banks, including ECB itself, will have an obligation to contribute to the smooth conduct of policies pursued by Member States' competent authorities, relating to the prudential supervision of credit institutions.