Adviser talks up benefits of European bank union

The benefits for the Irish economy and banking system from a European banking union will far outweigh any potential downsides, the former government adviser Alan Ahearne has argued.

“A national regulator would probably have the national interest at heart. But a single European supervisor would greatly outweigh any negatives that might arise,” Mr Ahearne said.

Details of how the banking supervision would be implemented and how closely the Irish banks will be scrutinised remains to be seen.