Germany’s federal auditor is concerned that the European Central Bank lacks accountability in its oversight role in the banking sector, according to a parliamentary report obtained by Handelsblatt.
In a report submitted to the German parliament’s budget committee, The Federal Court of Auditors, an independent body, says its E.U. counterpart, the European Court of Auditors, is unable to perform “an extensive review of the bank supervisory functions” at the ECB.
In its report, the federal auditor says bank oversight is an important public function that does not fall under the rubric of central bank independence, noting that national banking regulators like Germany’s had previously been fully audited before the ECB took over the responsibility in 2015.
“The federal government should explore all options for closing this oversight gap,” the report said.