Weidmann says ECB is Conflicted with twin Monetary

The European Central Bank suffers from a conflict of interests due to its dual responsibilities for setting monetary policy in the euro zone and for supervising banks, ECB policymaker Jens Weidmann said. 

 

"As a banking supervisor, it could find it difficult to be tough with a bank or even wind it down if it knows that, because of its monetary policy measures, it is its biggest creditor," Weidmann told Germany's Sueddeutsche Zeitung and other European newspapers. 

 

The Sueddeutsche wrote that he favoured spinning off the ECB's supervisory arm.

 

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