Lord Turner has spoken at the City of London Corporation’s Annual Reception for the City Office in Brussels. He said the success of the new EU supervisory structure will depend on:
- whether politicians take the ESRB seriously and whether its risk analysis is good quality;
- getting a rulebook that is both agreed and enforced commonly; and
- robust supervisory peer review.
He talked about the deficiencies the financial crisis had shown up, and highlighted cross-border retail banking. He stressed his continuing worries about cross-border bank operations which he said will always be a risk even with better pan-European supervisory processes. He also noted it is important to see the EU also as part of a global market with a strong role in helping deal with global issues, currently OTC derivatives and hedge funds.