Interview with Volker Wieland: "The ECB has too much power" ("Profil")

The implementation of the European Banking Supervision at the European Central Bank (ECB) has only been a first step according to Volker Wieland. In an interview with "Profil", the magazine of the Bavarian federation of ccoperatives (Genossenschaftsverband), he explains how the banking supervision should be modified

In Wieland's opinion, a central bank should be able to exercise its responsibilities without political influence. On the other hand, a supervisory authority should be subject to a review by a democratically legitimated elected body. In his view, the ECB has too much power.

A European supervisory authoritiy prevents state influence and lobbying. However, as Wieland emphasizes, it should be complemented by a stop of the privileged treatment of public debt so that state and banks do not longer share risks. In his view, an independent authority could be modified into an integrated financial supervisor, which is also responsible for the supervision of insurance companies and the financial markets.

According to Wieland, the low-interest phase involves risks for financial stability. The monetary policy of the ECB is too expansionary, Wieland says. Instead of easing monetary policy even further, the ECB should end its purchase programs sooner than announced.


Profil - das bayerische Genossenschaftsblatt: Volker Wieland: "Die Machtfülle der EZB ist zu groß"