The Bundesbank Vice President is responsible for financial stability at the central bank, among other things.
(Photo: Reuters)
Frankfurt In the search for a successor to the ECB’s chief banking supervisor, Andrea Enria, a decision is approaching. Insiders told the Handelsblatt that the ECB had interviewed several candidates in the past few days. Among them were Bundesbank Vice President Claudia Buch, Margarita Delgado from Spain and Sharon Donnery from Ireland.
The selection committee, which includes ECB President Christine Lagarde and several council members, is to draw up a shortlist after the talks. This could be published as early as Wednesday. The ECB and the Bundesbank declined to comment.
Enria will step down at the end of the year. So far, only the Spanish Ministry of Economic Affairs has made public that Delgado, the deputy head of the Spanish central bank, is applying to succeed him. However, it has already been leaked that Buch and Donnery also have ambitions for the post.
Donnery has been Deputy Governor of the Bank of Ireland since 2016. She ran for the position in 2018. At that time, however, she lost to Enria in a secret ballot in the Governing Council.
Buch has been Vice President of the Bundesbank since 2014. In April, she assumed responsibility for banking supervision on the Bundesbank Executive Board. Many observers already saw this as a hint for their application to succeed Enria. The doctor of economics attaches great importance to the precise evaluation of data. She is convinced that decisions can be improved in this way.
Possible prestige success with risks
For a long time, Buch was also responsible for statistics on the Bundesbank board. The 57-year-old researched the capital resources of banks. She has also long been responsible for financial stability on the Bundesbank board, with the banking system playing an important role.
The replacement of the ECB’s chief supervisor is part of a major job haggling at the European level. There, a number of positions have become vacant or will soon become vacant in the finance department, which were previously occupied by representatives from Germany.
It would be a prestige success for the federal government if a German became head of the ECB banking supervision. In addition, Finance Minister Christian Lindner (FDP) would then have the opportunity to nominate a successor according to his ideas for the post of Bundesbank Vice President. However, there are also voices who see this rather critically. They argue that this could diminish Germany’s chances of nominating a successor to ECB President Christine Lagarde, whose term ends in 2027.
Although the top posts of the ECB and ECB Banking Supervision have briefly been held by two Italians in the past, Mario Draghi and Andrea Enria, this is not considered ideal.
The EU Parliament already wanted a woman for the post in 2018
Other personal details could also be included in the negotiations, such as the successor to former ECB board member Fabio Panetta. The Italian government wants to make him the new head of the Banca d’Italia, which would free up his post in Frankfurt. It is expected that Italy will again propose a successor and have their say. Opposing candidates would also be possible, for example from Eastern Europe. Theoretically it would even be possible that the seat of the new anti-money laundering authority also plays a role.
As early as 2018, members of the European Parliament wanted a woman to fill the top position at the ECB Banking Supervision. However, the European Parliament does not have the last word in the process.
After the selection committee has drawn up a shortlist, the Governing Council votes on the position. There is also a hearing before the Monetary Committee of the European Parliament. In the end, the candidate must be approved by the EU Council with a qualified majority.
Different preferences in the banking industry
There are different preferences in the financial sector. Some bankers and supervisors believe Delgado and Donnery would be the best fit. Buch, on the other hand, lacks the necessary experience as a bank supervisor. “Practical experience is very important in this job,” says a bank representative. “This is not a post for proportional representation and political games.”
Supporters of Buch admit that she still has to familiarize herself with the microprudential issues of banking supervision. However, she is a very intelligent woman who will easily manage it. Leading the ECB’s banking supervision is also “not rocket science,” said a person familiar with the topic.
More: Claudia Buch takes over the banking supervision of the Bundesbank