O’Reilly takes on EU banking sector with ruling
A special group to advise the London-based European Banking Authority, beefed up after the scandals of the financial crisis, was top heavy with industry figures.
The five members, supposed to represent ordinary users of banking services, were in fact from one of the top credit rating agencies, one from the Federation of European Bankers and three from major accounting and auditors companies.
Ms O’Reilly, releasing her report, said: “The EBA was set up in the wake of the financial and banking crisis and lessons still need to be learned from that crisis.
“Stakeholder advice — a crucial part of the input on banking regulation — should, as far as possible, be fully representative of not only the different industry and consumer sectors but also Europe’s geographical balance.”
She found having 10 of the 30 members from the banking industry was all right as this was allowed for in the rules, but she objected to all but one being from new EU member states.
She also pulled them up short on their appointing all the consumers’ representatives from the new member states. They argued that they did this to try to balance those on the industry seats.
Ms O’Reilly also disagreed with their arguments for having just one trade union represented. She accepted the group, including a member from BusinessEurope — that mainly represents big companies — being given one of three seats for SMEs.
They pointed out that they received only four applications one of which was not suitable. Ms O’Reilly also did not find against them over the complaint that with five of the 30 there were too many British.
The EBA since the complaint was made has since reorganised the advisory group.
